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The Housing Market and The Credit Crunch
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by: stickystebee
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Word Count: 393
Over the course of the last couple years it is pretty easy to see the decline of the housing market. Prices are dropping,lenders are not lending and more and more people are facing property repossession. It can be difficult in times like these for people who are new to the market, and want to own a home. You may ask yourself if it a good idea to buy a home in this market or will people still lend money for you to buy a new home. The answer to your questions is yes. As the price of homes soared across many major metropolitan areas over the last decade, it was truly a sellers market, prices soared and lenders were happy to foot the bill. But as many of these homes are foreclosed, and the lenders lose money, no one seems to be able to sell to anyone anymore. This creates the perfect market for you to buy, prices are down, interest rates are fairly low and there are a ton of homes on the market. It is no lie that borrowing money has gotten harder, but it is not impossible. There are many banks which have not altered their lending policies at all, and still have very low competitive rates. These banks are generally what is known as a portfolio lender. A portfolio lender is someone who lends directly from their deposits and does not sell any of their loans. This means that, yes, they are typically more strict in their lending practices than other institutions, but it also means that they, for the most part, were not affected by the large increase in foreclosures. This is because they never sold bad loans to other institutions, and lent strictly to keep those bad loans to a minimum. Offers from many other lenders are still available, open your local paper and take a look. It can be a daunting process but look for a lender with a good deal, and go check them out. Don’t get sold a mortgage, make sure that you find out the real interest rate, find out what your payments will be for the life of the mortgage, make sure your not getting ripped off. Where you get your mortgage can make a big difference so be thorough and do your own research, it will help in the long run.
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Over the course of the last couple years it is pretty easy to see the decline of the housing market. Prices are dropping,lenders are not lending and more and more people are facing property repossession.
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