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We Can Help You Get a Loan
There are three conditions the real estate market can be in; a seller’s market, a buyer’s market, or a balanced market. In a seller’s market, there are more buyers looking for homes than there are homes for sale. In a buyer’s market, there are more homes for sale than there are buyers looking for homes. A balanced market has about the same number of buyers and homes for sale. We have just come off a long seller’s market and have entered a buyer’s market. This is an excellent time to buy a home.
During the seller’s market, many people bought homes that they could not afford. This was possible because some lenders made loans with a very low initial interest rate and a low payment. Sometimes the payment was not large enough to cover any of the principal. Sometimes the payment did not even cover all of the interest payment. This is called negative amortization and the amount not paid is added to the the loan balance increasing its size. After one or more years, the loan reverted to a variable interest loan with a much higher interest rate and a much higher payment. Many realtors advised their buyers not to accept such a loan but some choose to ignore the advise. People who could not afford the increased payment usually lost their homes or are presently loosing their homes.
Unless you plan to pay cash for your home, your first step should be determine how much you can afford to pay. A reliable lender will help you with this. He or she will look at your credit report, income, amount of savings, and bills to determine your maximum price and the type of loan that is best for you. It’s best at this time to get a pre-approval for your loan. When you are ready to write an offer on a home, a pre-approval will look the same as cash to the seller.
You are, of course, free to select any lender you wish but your PrimeTime agent can refer you to a reliable lender who will provide right loan for you.
Fill out the Buyer Consultation Request form or call (530) 872-7100 to get a lender referral.
Copyrhght 2007 by Charles T. Pettijohn Real Web Sites
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