As 2010 comes to an end, real estate professionals still agree it is still a good time to buy a home for the long term.
"Homeownership provides stability and security for you and your family, but it's important to look at the benefits and risks and weigh them carefully before deciding if now is the time to become a homeowner," said Jeff Bell, president of the Silicon Valley Association of REALTORS®. "If you have excellent credit and can maintain a budget, it may be a good time, since interest rates are still low, but if you are having financial difficulties, take the time to work through those issues before starting the home buying process. You'll be in a much better position to be a responsible homeowner and you'll be able to enjoy the benefits of homeownership much more."
Below, the Silicon Valley Association of REALTORS®, the local professional trade organization representing over 4,000 Realtors® and affiliate members engaged in the real estate business on the Peninsula and in the South Bay, shares these tips for home buyers with information from the National Association of REALTORS®.
· Check your credit report for accuracy and completeness.
Buyers with inaccurate information on their credit report may have a hard time obtaining financing, or be offered loans at higher-than-market interest rates. The Fair Credit Reporting Act gives consumers the right to a free credit report from each of the three nationwide credit reporting companies every 12 months. Visit https://www.annualcreditreport.com to request a report.
· Educate yourself about mortgages and mortgage fraud.
Many mortgage products are available in today's market, but not all of them work for all buyers. NAR warns consumers against exotic loans and predatory lending practices that can poison the home buying process and trap unsuspecting borrowers into years of financial hardship. Consult a REALTOR® to learn about different financing options and their implications over time.
According to Fannie Mae, mortgage fraud has increased five-fold in the past 10 years. Unsuspecting home buyers who aren't familiar with an area's property values can be victimized by scam artists who have bought a property at a bargain-basement price and have made minor cosmetic changes to sell the home for much more than it's worth. People with blemished credit can also fall prey to unscrupulous individuals who pose as real estate agents or mortgage brokers, offering promises of a new home and mortgage qualification. These buyers end up assuming a loan they can't afford, and the lender forecloses.
· Hire the right real estate professional for the job.
When you're buying a home, would you know what to do if your financing fell through the day before closing, your home inspection found a termite infestation, or your future neighbors had just built a wall on your property? As a buyer, you want someone who knows the market and who has experience handling the particular needs of home buyers, whether it's identifying homes and neighborhoods, negotiating for the best deal, or coordinating the over 20 steps between contract acceptance and closing. Remember that you're not just buying a home; you're investing in your future. To find a REALTOR® in your area, visit www.silvar.org.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.