Dreadful information about the slumping American housing market is all over TV news and in almost every paper. During this housing slump many potential first time home buyers often wonder, should i buy a house in 2008? While every persons situation is different the next few paragraphs will hopefully help you decide whether or not to buy a house in 2008
It is a fact that property values across north America have dropped, in some areas they have dropped drastically and others its just a slight dip. Buying a home when prices are at the lowest is the best way for buyers to get the most for their money, and many people are now taking advantage of the lower home prices.
The major factor for most people when buying a home is securing a affordable mortgage to purchase the home with. In today’s current market mortgage rates have also fallen to very low levels making financing a new home more affordable then one year ago. When low mortgage rates are combined with reduced asking prices your money suddenly is able to buy you much more home then you previously thought possible!
The only real roadblock to buying a home in 2008 is going to be actually qualifying for a mortgage. Even though mortgage rates are low the lenders have tightened up their lending guidelines since the housing slump began. Since many borrowers need 100% financing it makes things that much more difficult. To deal with stricter lending guidelines borrowers are going to need excellent credit or have down payments in the range of five to twenty percent to secure home financing.
With property values falling and mortgage rates at very low levels 2008 is a great time to buy a new home. Not only is there more selection on the market but you will also be buying when prices are low so when the next real estate boom starts you will make substantial money on your investment.