Right time to purchase home?

**LineInTheSand** · 10-16-2008, 07:12 PM

Hi-
I presently do not own a house. It is a dream of mine to have my own home. I have saved money for a down payment. Is now the right time to buy?
How can I find a forclosure?
How does a mortgage company or bank determine how much they will loan a person?
Thanks,
LIT.Sand

**Teresa T** · 10-16-2008, 07:31 PM

Well I'm far from the real estate buying expert considering I bought a house I really didn't want and have never really been happy in.

I think prices could still go down. It certainly would not hurt to find an agent and look around. Remember you don't owe them ANYTHING just because they showed you some houses. If you look and decide to wait or find another agent that is your choice and you certainly can. It's a business relationship not a friendship.

I'm not sure how the foreclosure thing works. An agent might be able to help you with that. Or ask at your bank. I know there are some foreclosures that are sold very cheap which they will not even let you go inside. Some people are thrashing those houses before they leave.

I'm sure someone here has more information on the foreclosure area.

Congratulations on saving the down. Just please be sure you are finding the right house for you.

Also having 20% down is a big help. You can also talk to a lender/mortgage company about qualifying for a loan.

**Squirt** · 10-16-2008, 08:15 PM

I've been reading that if you have 20% down and good credit, you aren't going to have a problem getting financing, regardless of the credit crunch. I think Zillow.com can find you homes for sale- you pick an area, they show you a map with little house icons where there are homes for sale, and many of them are listed as foreclosures. You can also look at homes that have sold in that area and see the selling price; that will give you some negotiating power.

**Greebo** · 10-17-2008, 08:49 AM

Originally Posted by LineInTheSand

Hi-
I presently do not own a house. It is a dream of mine to have my own home. I have saved money for a down payment. Is now the right time to buy?
How can I find a forclosure?
How does a mortgage company or bank determine how much they will loan a person?
Thanks,
LIT.Sand

If you are otherwise debt free, this is a GREAT time to buy a home!! They are on serious sale right now.

First, do not ask how the mortgage company/bank determines how much they will loan.

Instead, ask how much YOU can afford. You can afford, comfortably, about 25% of your take home house hold income for a mortgage payment, before taxes and insurance. Figure that out, and then you can figure out how much house you can afford. (If you post your household income, I'll do the math, its actually a tad tricky - it has to be backed into)

If this is your first time you definitely want to work with a good real estate agent in your area. I suggest you try one of the Dave Ramsey Endorsed Local Providers. They will help you understand the process and will be able to search for homes suiting your buying range and find the good deals.

**Momof3girls** · 10-18-2008, 12:06 AM

There are books you can get about buying foreclosed properties. Try the library to see what is available. Sometimes there are lists of homes by banks, but they aren't very current.
There are realtors that specialize in foreclosed properties.

**cmdarlin** · 10-18-2008, 07:07 AM

Just my little 2 cents.... We're going thru a foreclosure right now and I definately agree about working with a reputible real estate agent. Unfortunately we didn't and after it was too late we discovered alot of problems with our property. That on top of a house payment we couldn't afford after a significant income loss simply killed us. Good luck.

Debbie