Buying Your First Home: Myth or Reality?

The idea of owning your own home, just like your parents did, is something many young couples dream of. For many young adults the affordability of owning a home is much better now than it was five years ago. Property values are starting to bottom out now and monthly payments are down to the lowest levels in several years. In addition, interest rates are low and the availability of homes is high. But there are still some obstacles to buying a home. These obstacles can be overcome if you have the right realtor working for you.

Ever since the housing crisis began, several banks have tightened up on financing home mortgages. They’ve made it difficult for first time homeowners to get loans. In addition, Congress has passed several new laws, one of them changing the method in which houses are appraised, making it difficult to get a true value on homes which are located in declining market areas. Practically every neighborhood is in a declining market area. Many would-be buyers are often thrown out of the market when their offers to purchase bank owned properties are rejected because of low values, which sometimes fall lower than the agreed purchase price.

Even though the Obama administration has bailed out many of the major banks with government issued stimulus funds, these same financial institutions are making it very hard for first time home buyers to get loans. Even with excellent credit histories, these same home buyers are finding it difficult close escrow and get their house keys handed to them for the first time. For instance, if a home buyer has been pre-qualified by a lending institution of their choice, he/she may still have to get approved by the bank that owns the property. Even though they might have qualified with the first lender, they may not with the 2nd lender. These days practically 90% of all home sales are properties owned by banks.
While buying your first home is never easy, things may be a bit harder if you don't have an experienced realtor working at your side. But bargains do still exist, and if you’re patient, a first home can still become a reality with the right realtor.