Fear Not: Answers for Worried Home Buyers
Written by Susanne on August 20th, 2008
Anyone who doesn’t know about the current problems facing the housing and mortgage markets in the U.S. economy might be hanging out on Mars with NASA’s Polar Lander.
Here on Earth the subject is hard to avoid and the result is a lot of worried consumers, including home buyers.
Here are five important questions on buyer’s minds, and five reassuring answers:
Is it still possible to qualify for a loan?
Absolutely. Listening to the news, you could easily get the impression that lenders are not lending any longer. But they are. Although it may have gotten a bit more difficult to qualify for a loan, it’s still not hard to do. The Credit Union is committed to providing the best possible home loan options to its members. If you have decent credit, a stable income and are not over extended on credit or loans, you should easily qualify.
How much will I need for a down payment and what will my monthly payment be?
The way to get the fastest and surest answers to these questions is to get pre-approved for a loan. A pre-approval has an added benefit of telling you the size of the loan for which you can qualify. The added sense of confidence this information can give you as you look for a home is well worth the trouble.
What if I overpay for a home?
You won’t. First, once you start looking for a home in a particular location, you’ll get a sense fairly quickly about market prices there. Second, your real estate agent will let you know what prices comparable homes have sold for recently in that area. Also the lender will order a professional appraisal before final approval of your loan, and will not approve a loan for more than the appraised value.
What if there are problems with the home I buy?
Home buyers have several protections against the possibility of discovering problems after closing. First, sellers must disclose known defects as part of the contract. They can be held liable for damages should they fail to do this. Second, you will have an opportunity to get the home inspected by a licensed home inspector who will provide you with a list of items that should be fixed before closing. Finally, you can ask for a home warranty to protect you should repairs be needed after closing.
Is the paperwork involved in buying a home complicated?
Yes. Not to worry, however. There are professionals at every step that are trained and ready to guide you through the thickets. The credit union and your real estate agent will work with you as a team with the same goal – to get you through the home buying process with confidence, minimal stress and sound advice.
