DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

The real estate market has really been thrown by a mutually conflicting picture. On the one hand are many people struggling to pay their dues for the mortgages they have. Some of them have already been told by their lenders that the lenders are going to foreclose. In fact, the foreclosure rates have touched new heights and are tipped to soar further. On the other hand are people who are looking at this as a huge opportunity to get the dream home they have been waiting so long for.

Further, the deadline for availing the tax credit of $ 8000 for first time homebuyer has been pushed back to June. There is more good news; there is tax credit, of around $6500, for existing homeowners who want to buy a new home. However, it has some pre conditions, like the period of stay in the current house and the annual income of the household. This should further boost the sales, which seem to be picking up due to the federal support and existing market situation.

Most of the dreams of the homeowner are fulfilled with the help of a mortgage loan. Since many cannot afford to own the homes with their own money, loans are the order of the day. Whatever the situation of the market, loan interest rates, terms and repayment schedules play a key role in purchasing a home. The only other important aspects would be the price of the house and amount of loan that can be financed by the lender. With the interest rate for a 30-year fixed term loan going down the 5 percent barrier (it is at 4.98 percent this week), good properties are available with wider choices and negotiable rates. It surely is a heady combination for those who have saved enough.

If you have enough savings and are sure about your future cash flow, drive a hard bargain and chances are that you will get the best deal in terms of property, price and interest rates. Some might wait a little longer to see what the second round of foreclosures, which were held back, brings to the table. With the announcement of the tax credit for step up consumers, there are ample opportunities to get the tax benefit. Although it’s a difficult call for some, it’s becoming relatively easy for other prospective buyers to find the home of their dreams.

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This entry was posted on Monday, April 5th, 2010 at 1:32 pm and is filed under Real Estate, homebuyer. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.