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Last year my husband and I put $50,000 down payment on a home we built w/ a well known builder in Clarksburg Md. We were supposed to close on our home in Oct. When the mortgage crunch happened in Sept. we lost our loan because my husband had only been a business owner for 1 1/2 yrs and now the lenders say that 2 years is a minimum(A year ago that exception didn't matter).
The builder said we had a year to buy with them again in order to apply our deposit. I really love this house. The housing prices keep dropping and we wonder how this will affect us. We should be more than qualified for a another loan in 6 months. We have represented ourselves thus far. So, we have no realtor. What steps should we take now that the house is on the open market?
... The very ultimate safety is for you and your family to wait at least one year to see what is going to happen with home prices.
Obviously, you don't want to become "Upside - Down" with a new house and mortgage scenario. That condition is when your mortgage is 'worth' / costs more than the house since the house may have then dropped in price.
So if you were to buy a $300K house now and in the future, it dropped in resale value to $190K - - then 'you' or whomever owns the house has a tremendous loss.
IF you need an immediate roof over your head, then rent a home you can afford for at least one year into the future. Then at that time, the 'futures' of home prices will be more clear in the U.S.
Last year my husband and I put $50,000 down payment on a home we built w/ a well known builder in Clarksburg Md. We were supposed to close on our home in Oct. When the mortgage crunch happened in Sept. we lost our loan because my husband had only been a business owner for 1 1/2 yrs and now the lenders say that 2 years is a minimum(A year ago that exception didn't matter).
The builder said we had a year to buy with them again in order to apply our deposit. I really love this house. The housing prices keep dropping and we wonder how this will affect us. We should be more than qualified for a another loan in 6 months. We have represented ourselves thus far. So, we have no realtor. What steps should we take now that the house is on the open market?
Will you have 20% down/into this property? Good credit? Business is providing enough net income + depreciation to support new loan and all other debts? Do you have any cash or investments in reserve?
If so, get your 2007 taxes done ASAP after the new year and you should be good to go. If your lender says otherwise go see another lender.
Does you and/or your business have a good relationship with a bank? Look into a portfolio loan (bank lends their own money and holds the loan in house). Portfolio loans can be approved in house. They don't have to comply to secondary market (Fannie & Freddie) guidelines.
... The very ultimate safety is for you and your family to wait at least one year to see what is going to happen with home prices.
Obviously, you don't want to become "Upside - Down" with a new house and mortgage scenario. That condition is when your mortgage is 'worth' / costs more than the house since the house may have then dropped in price.
So if you were to buy a $300K house now and in the future, it dropped in resale value to $190K - - then 'you' or whomever owns the house has a tremendous loss.
IF you need an immediate roof over your head, then rent a home you can afford for at least one year into the future. Then at that time, the 'futures' of home prices will be more clear in the U.S.
Carter Glass,
Wheaton, IL
It would only be a loss to them if they decided to sell too quickly. If they
plan on staying in the house a long time then its not a problem. That said
I do think house prices will continue to fall,but if someone is ready to buy
then go for it. Basically we cant tell you what to do.
We Are In A Very Serious World Wide Economic Problem
That's because colleges are still 'pumping out' grads more and more each year. Then there are older / wiser former grads wanting to return to college for another type of degree / and new vocation.
Next we have companies giving less remuneration and 'perks' for very knowledgable / educated potential employees.
Then there is the problem of increasing prices in utilities and the lack of our U.S. Government refusing to acknowledge the cost increases in basic staples.
"Well, the encomomy is doing great but we don't count the increased prices in food or gasoline, etc." Then there is the unemployment statistics. Something like unemployment compensation for so many months and then those folks are no longer counted if they are still unemployed.
IF both the governemt and U.S. business acknowledged that our economy is in very bad shape, then EVERYONE would stop spending money. And therefore we would spiral downward even faster. So what is the situation?
Well, I don't believe anyone knows for sure since our economy in the U.S. is interwoven into the economy of the world.
So we take careful precautions regarding the financial situation in our own family. We stay put in a former employment unless we are laid off. If we are laid off, then we search for a new employment position around our own town - - not searching for a position 'across the country' because one thinks that the grass is greener over 'there'. It is not....
And we take a wait and see attitude regarding the purchase of a home right now. It costs nothing for a buyer to wait and see for one year. And perhaps that family might save their life savings in the form of lost equity in the situation of a buyer.
Of course, that is countrary information for a 'seller' who has already made his 'bed and now has to sleep in it'.
Last year my husband and I put $50,000 down payment on a home we built w/ a well known builder in Clarksburg Md. We were supposed to close on our home in Oct. When the mortgage crunch happened in Sept. we lost our loan because my husband had only been a business owner for 1 1/2 yrs and now the lenders say that 2 years is a minimum(A year ago that exception didn't matter).
The builder said we had a year to buy with them again in order to apply our deposit. I really love this house. The housing prices keep dropping and we wonder how this will affect us. We should be more than qualified for a another loan in 6 months. We have represented ourselves thus far. So, we have no realtor. What steps should we take now that the house is on the open market?
Elocin
Just how far did the price drop?
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Even Though You Love That House....
