March 25, 2015
There are many life changing situations that you don’t think you have control over, but you do.
However, the main problem for many buyers is that there are no homes on the market that meet their criteria….or so they think.
Let’s look at the largest buying pool, which is the first time buyer. They are told what they qualify for and are sent off to find that home only to find they just can’t buy what they want because it is just a little over their price range and out of their control… or is it?
First time buyers have so much buying power that they are unaware of. Often times their lender or bank do not look at all options. For example:
• The first time buyer tax credit of up to $2,000 per year for the life of the loan is considered income and may help them qualify for more money. • With rates at an all-time low, look at every $5,000 more in price as approximately $27 in payment per month. • Refinance options on cars with low rates help qualify for more buying power. • Ask for closing costs credits but also ask for Pre-paids – items that are typically paid during application that could be paid at the closing. Many sellers are willing to give these credits.
Bottom line is that buyers limit themselves to looking at homes they really don’t like based on price and find it’s not for them. They wait until a home that is better comes along, which is not happening, rather than evaluate their buying power now. Important to note is that most towns and cities in our state show that prices are rising. Waiting makes no sense.
Too often I see buyers miss out on their perfect home thinking they cannot qualify when they actually do qualify.
Explore your options and understand your true buying power.