and home prices are still depressed. While low rates and low prices have been the norm for a while now, this situation is not going to last forever. Once we see material improvement in the unemployment rate, housing prices and interest rates will start to move up. No one can time the bottom of the market, but if you've been on the fence about buying, its probably about time to start moving off that fence. It will take time to find the right place, and the process can be discouraging at times, if you run into issues with financing, inspections, or appraisals that delay or, in some cases, prevent closings. But don't get discouraged - this still may be one of the best times in history to buy real estate. Many buyers are relying on FHA financing due to the low down payment requirements, but FHA financing can be problematical. For example, condos have to be approved by the FHA in order to use FHA financing - many condo associations don't have this approval. Also, FHA requirements can hold up or derail transactions if the appraiser identifies potential concerns with the property. And if you are purchasing with an FHA 203 (k) rehab loan, you are at a disadvantage when bidding for properties with multiple offers - particularly with foreclosures and short sales.
If you have chosen FHA financing because of the low down payment requirements, there are some other non-FHA low down payment loan programs available for first time buyers. Check out Neighborhood Housing Services at http://www.nhschicago.org/
As you zero in on the type of property you plan to purchase, you may need to shop around for the right financing for the type of property you are purchasing. This will, of course, add time to the buying process. In your search for financing, don't sweat the interest rate - from an historic perspective, rates in general are at extremely low levels. Finding the right financing to enable you to purchase the property you want may be of greater value than shaving a bit off the interest rate.
Please don't hesitate to contact me if you have any questions. |