In my lifetime of being a Realtor, 20 years, I have never seen interest rates this low. The ability to get financing has loosened up to logical credit scores *620 and above. The amount of homes for sale continues to grow each day making prices as competitive as you will ever see. Supply and demand creates a perfect buyer’s market.
So I ask again…where are the buyers? Lenders allow 36% of buyer’s gross monthly income to go toward their house payment and 45% to be applied to total debt. When you hear 36/45 it applies to the income/debt ratio needed to buy a specific home.
I know many buyers have been waiting to accumulate enough money to buy a home. The down payment and closing costs can be daunting but the reality is if you are buying a home valued $271,050 or below you can use FHA financing which requires 3.5% down and if the contract is written well you can get the seller to pay your closing cost. This means you can buy a $200,000 house for $7,000 and your total payment will be $1,640 per month (principal, interest, taxes and insurance).
This is less than many buyers monthly rent and that does not ever take into account the tax deductions available for home ownership.
So buyers come out, come out wherever you are and don’t miss this potential once in a lifetime opportunity for home ownership.
*Number can fluctuate depending on the market. Please verify information.
Written by Mary Beth Harrison, www.dallastexasrealestateblog.com
