Getting Pre-Approved Proves Harder than Before
I have had several buyers in the past month and a half that have come to me after choosing to sit on the fence about a home purchase. They were a little leery of the real estate market and just didn't want to get burned - which I think is a fair objection. Buying a home is a major decision and should not be entered lightly. If you aren't sure whether or not you should buy a home, you should probably just continue to rent for the time being. You will know when the time is right.
To make a long story short, all of them had little to no money to put down on a home, but did have stable income. They were also pre-approved for mortgages to make their first home purchases. None of them are able to make a home purchase today.
Why?
Things have definitely changed in the lending world. Lending institutions are realizing that without any money down, people have nothing to lose with foreclosure.
Why am I posting this today?
Because I feel bad for a lot of good people who would be great homeowners that are no longer able to make purchases.
How do we solve this problem?
Pro-actively. There are still a couple of $0 down options available for home buyers (Minnesota Housing Finance Agency has down payment assistance programs, VA home loan guarantee, and others). Also, it is time to start saving some money. If you aren't sure how to get started with savings, give me a call and I will be glad to direct you to the right people.
Lastly, if you are wanting to make a home purchase, no more than ever you need a quality lender to work on your behalf. Someone who won't take away your pre-approval and leave you high and dry without a home. If you have someone you trust, great. If you don't, ask your real estate professional. They will probably have several names of people they know and trust. If you want my list, give me a call at (320) 492-2667 or just look at the Business Testimonials section of this blog. I have a couple of real good lenders there with full contact information.
Jason Tangen, Broker Associate with Edina Realty in St Cloud MN
http://jasontangen.edinarealty.com - Search for open houses in Minnesota
http://www.StCloudEdina.com - Get a list of the foreclosed properties available on the St Cloud MLS
