First Times Buyers

Posted by Joseph Epifanio on Wednesday, August 15th, 2012 at 2:20pm

There is a huge pent-up desire in the USA to buy a house, with the economy being depressed for the last few years,  many people have not been able to afford to move house,  either through being upside down with their loans or sadly losing jobs.  People who have been trying to sell homes during this period have found they are up against the hard competition, the housing inventory was growing daily, that,  together with hard to get mortgage's kept many people from moving house.  First time buyers in Naples,  who have waited until the market levelled off before they jumped into owning a house, are now finding that the inventory is getting thin, first time buyers represent 32%  of purchasers, in a good economy they would represent around 40% of buyers, the extremely tight credit standards together with a low inventory of homes is keeping some of the first time buyers from purchasing their first home.  However, with mortgage rates at around 3.53% and continuing to drop, now is one of the best times ever to buy a new home. So if you're considering purchasing a home anytime soon I highly recommend that you get yourself pre-approved, talk to your mortgage broker see what incentives are available for first-time buyers and take advantage of the all-time low prices and interest rates, it will not be long before they start their steady rise uphill.

By Joe Epifanio

1 Response to First Times Buyers

Megz wrote:

First, PMI only kicks in if your mortgage is more then 80% of the sales price. So 20% down would mean no PMI. You will see some peostrs here saying you need to put 20% down. The MOST IMPORTANT thing to remember is can you afford the monthly payments. The amount down is NOT as important as the monthly payment. I highly recommend that your TOTAL mortgage payment (loan + taxes + insurance + PMI (if you have it)) does not run more the 25-28% of your GROSS MONTHLY INCOME. And this is based on a 30 year fixed rate.Your lender will tell you that you can go up to 36% of your gross income. But this is only going to case problems down the road. DO NOT BECOME HOUSE POOR.If you only have 15%, you could do a 80/5/15. This is a first mortgage of 80%, a 2nd mortgage of 5% and 15% down. Lenders also do 80/15/5; 80/20 and 80/10/10. These are GOOD programs.In regards to the first time program. If really depends on the program. Everyone is different. You need to talk with a lender to see the requirements of the program.

Posted on Monday, August 27th, 2012 at 4:06pm

Leave A Comment

Format example: