Buying A Home During A Recession

Louisville Real Estate agents are constantly being asked for tips on buying a home during a recession

. This buyer's market that we're experiencing is the perfect time for first time home buyers to finally take those first scarey steps into the Real Estate market. It's also a good time for people who are looking to get into the investment real estate market to pick up some competitively priced rental properties. If you're thinking about taking that leap, too, we've got some tips on buying a home during a recession that will help you in the buying process.

The best thing you can do before you even get started is make sure your finances are square. Banks and lending institutions are toughening up their lending requirements in an effort to avoid further foreclosures and delinquencies. So that means your going to need a very good credit rating right now before you'll even be considered. There may well be a glut of low priced and foreclosure property out there but the banks are no longer handing money out to just anyone who wants to buy Real Estate. So a better than good credit rating is a must.

You'll also need verifiable employment information for most lending institutions. They want to make sure that you not only have a job now, but that you'll also have it long enough to pay off the mortgage. A simple check stub may not be enough so keep track of all of your employment information. A substantial down payment is almost always necessary these days, too. Again banks are not being nearly as free with their money as they were in the past.

If you're thinking that because this is a buyer's market there are virtually free houses growing from every tree you're in for a surprise. Unless you have got a large cash reserve and a solid means of employment you may need to reconsider. The term "Buyer's" market generally means that there are far more homes than there are buyers and that market values, therefore asking prices, are lower. And usually during a buyer's market the economy is in a lot better shape, jobs are secure and banks are lending. However these are strange economic times that we're in right now.

It's true that there are definitely more homes on the market right now than there are buyers for those houses. However just how many buyers have the money, the credit rating, and the job security to risk on buying those homes right now? Sure there are folks out there buying up these properties right now. People who have a good credit rating, a down payment and job security. But if you are not really certain then perhaps one of the best tips for buying a home during a recession would be to contact a Louisville Real Estate agent who is aware of the market in your area and ask for their advice. They will be better able to tell you what the lenders in your area are doing and what the housing prices are like and then together you'll be able to make an informed decision concerning buying a home during a recession.

by: Theodore S. Lincoln.

POST COMMENT

Make a Sense of Style in Your Living Room with Living Room Furniture What You Need To Do To Succeed Outdoor Wedding Photography So You Want to Make $45 an Hour As a Virtual Assistant Working From Home? Condos in Puerto Vallarta Real Estate – Location and View Data Entry: A Work At Home Definition How To Start a Blog - Work At Home While Earning Blog Money Infant Jogger Double Pushchair - Ideal For The Active Parents Wooden Cabinets Create Better Home Storage And Organization Things to consider when remodeling Best Inside Information On All You Need To Know About Obtaining Home Loans Some Dos And Don'ts When Dealing With Professional Carpet Cleaners Home renovation... Start here How Safe Are Home Teeth Whitening Products?