September 13th, 2011
In her article “4 Home Buying Lessons We Should Never Forget Again,” Tara-Nicholle Nelson offers some insight into the lessons homeowners have learned through the housing market disaster. These lessons have created 4 trends that many real estate professionals support, and hope stay around.
1. Buying less than you are approved for. Not many people would say maxing one’s credit card is a good idea, so why max out your mortgage? Home buyers are starting to realize that more isn’t always better, and it doesn’t make sense to purchase a home with more space, land or amenities than what are needed. Those conservative buyers also realize that bigger homes mean bigger bills for energy and maintenance.
2. Buying for Long-Term. We’ve said it time and time again, so we won’t say it again.
3. Being More Financially Conscious. With all the talk of widespread foreclosure, buyers are starting to take buying more seriously, as they should. They realize how big of a financial commitment a home is, and they’re saving up, polishing their credit and keeping a steady income before making the big purchase.
4. Reading Loan Docs. We’ll leave this one to Nelson:
Before you roll your eyes, understand this — foreclosed homeowners tend to fall into two categories: those who had crazy ARMs that reset to insane payments they could never afford without refinancing, and those that lost their jobs and couldn’t make the payments as a result. Some fall into both. But the fact is, the first group is full of folks who claim to have never read or understood their loan documents before signing them
As a result, more home buyers are reading each and every line of each and every document. AND they’re asking questions when something doesn’t make sense.