It's really interesting to see how the general public reacts to the news.  As a devoted business owner that has an obsession with my website and traffic, there's not a day that goes by that I don't keep track of the viewers going to www.homesandfood.com.  With hundreds of people searching for homes on our site on a daily basis, the new inquiries and phone calls have dropped dramatically.  Why is that?  Could it be the uncertainty of the economy?  Are homes overpriced?  Interest rates too high?

Yes, the economy is in bad shape for the moment.  There's no doubt about it.  This whole debacle originated from the government putting pressure on Fanny Mae and Freddie Mac to loosen guidelines so buyers could purchase a home, who normally couldn't have.  Because home ownership is such an important element of our economy, it will be one of the key factors that turn this problem around.  In our local paper just yesterday I read an article about the abundance of homes that are for sale.  One of the potential home buyers that was interviewed stated that maybe they should wait for the prices to come down some more.  I have a feeling that this thought process runs wide through our area.  Here are the facts..... In the majority of the cases, there is no room for prices to come down.  Every seller is different.  Many of the homes that are currently on the market were originally purchased within the last few years and because the big sellers market was over, there is not a whole lot of room for negotiating.  Every once and a while the planets will be aligned perfectly and you will find a seller who has tons of equity and is very motivated to sell their home.  Good for you!  Most of the time that is not the case.  Most of the time, buyers should expect to have their closing costs paid by the seller and maybe have a little taken off the sales price as well.  That in itself is a great deal in our current market. 

Conditions in the mortgage industry will become more stringent in the coming months.  Lenders will want to see higher credit scores, low debt to income ratios, and assets.  Government backed loans(VA and FHA) will be the only loans that will be 100%.  A buyer will more than likely have to put down at least 3% for a conventional loan.  Our area, of course, has a very high military influence.  All of our service men and women will be able to take advantage of a 100% loan for a house.  For non-military, as long as you make under $63k a year($75k for a couple), you will be able to obtain a 100% FHA loan.  For the rest of you, you will need to find that down payment from somewhere. 

House prices are fantastic.  Inventory is plentiful.  Rates are extremely low.  Now is the time to call a local lender and get approved.  If you would like any recommendations, I have two different lenders that have done wonders for my clients in the past.  If you're moving into the area or paying way too much in rent, contact me so I can show you what all of your options are.  It's never been better to purchase a home in Hampton Roads. 

Jeff Nelson
757-749-1616
www.homesandfood.com