So said Chicken Little, as he concluded an acorn fell on his head.  He convinced his friends he was right, and the group ran off to tell the king of the impending disaster.  They were tricked by a sly fox who directed them to his den, where he ate them all for lunch.

As the final days of the Home Buyer’s Tax Credit tick away, thousands of potential home owners are letting $6500 or $8000 slip away from them because they fear the sky is falling –or potentially could. Buying a home is a big commitment that requires careful planning, but if you are holding off on homeownership, are your reasons legitimate or are you acting a little like Chicken Little?  Are you so convinced that the worst case scenario will befall you that you are hesitant to make the move to get a house under contract by April 30?  Is something else going on?

How stable is your job? You may have honestly told the lender about your current finances but do you secretly fear a layoff or a change in income?

Do you fear too much debt? If you have been approved for more than you feel comfortable with, there is no requirement that you buy more house than you feel comfortable paying for.

If you are buying a home with a spouse or partner, do you want to be tied into a real estate deal with them? Buying real estate implies a level of commitment you might not want to make.

Are you afraid you will make a bad investment, given the last year or so of falling home prices?

If you take a look at things and determine that you aren’t ready to move, fine – there will still be homes available after April 30.  However, you can take some steps to assure yourself that you are making a good decision to buy:

Consider the whole picture.  Aside from credit, housing prices are low and so are interest rates.

Stay well below what the bank says you can afford.

Put as much down as you can, but not so much that you use all your reserves. Getting an FHA loan rather than a conventional one can help you preserve some cash for an emergency fund.

If you are concerned about your relationship, work with an attorney to set up the deal in a way that will preserve the interests of both of you.

Anticipate an exit strategy if you have to sell.

Chicken Little would have met a different fate had he assessed his circumstances accurately.  No one can predict the future, but you can ensure yours as a happy homeowner if you do.

Express Realty Services specializes in finding affordable homes for residents of DC, eastern Maryland, and northern Virginia.  Act now to take advantage of the Home Buyers Tax credit.  Just call us at 888-306-9450 or visit our website to chat with a representative about how to get started.

Buying a home is probably one of the most significant, if not biggest, purchases that a person makes. And it isn’t always that easy to come to a decision. People often respond to this question with a “We’ll buy one when we have the money” or “We’ll think of investing in one when the time is right.”

Let’s face facts – waiting to save pots of gold before you even contemplate buying a house, is like asking your children to give up on school till you have the resources to educate them. Time is often an important consideration, however, the right time comes when you recognize your opportunity and act upon it.

Myth #2

It’s a bad time to buy a house.

Fact

Quite the contrary is true. In this economy, foreclosures have increased to record levels leaving more supply than demand. House prices have fallen at an alarming pace; and fixed-rate mortgages have reached a historical low.

That’s good news for new home buyers, who find it easier to make stable payments over a period of time.

First-time home buyers can also sigh in relief, thanks to the Housing and Economic Recovery Act of 2008. What’s more, if you qualify for the FHA (Federal Housing Administration) mortgage insurance or loans, your down payments and rate of interest may decrease even further.

All of these factors make it a buyers’ market, proving to be one of the best times to consider home ownership. You definitely can look at it as an asset or an investment for the future.

What can you do?

Buying a home is a big step. And often that, in itself, scares people away. It does get difficult for prospective home buyers to gauge a market by themselves. If guided well, people are often pleasantly surprised at what they CAN actually afford. At Express Realty Services, we believe that every individual deserves to live in a beautiful home. We have in-house experts who have a unique understanding of this market, and are available to guide and assist you.

One quick call to us, and we can provide you with vital information to support you through the processes, and help you seal the deal. Just call Express Realty Services at 1-877-9-EXPRESS (1-877-939-7377) and see which home is waiting for you!

Want to dispel more myths? Check out the other blogs in this series: Myth 1; Myth 3; Myth 4