Housing prices have been steadily increasing over the past few years at an astronomical rate, making it increasingly more difficult for new home buyers to qualify and afford a home. With rental rates skyrocketing as well, the longer you wait to stop paying someone else’s mortgage and paying your own, the more difficult it becomes for you to own your home.

Recently the market has slowed and housing prices are adjusting downward. It’s all part of the business cycle: several years of property value increases are inevitably followed by some years of market adjustment. Foreclosures are becoming more frequent as interest rates on specialty mortgages are adjusting, and many household incomes are unable to keep pace. However, this is a normal adjustment phase of the market. As home prices decrease and housing inventories increase this can be a great opportunity for homebuyers to purchase a home..

Owning your home takes planning, budgeting, and education to make informed decisions and do it right.

The following links can help and guide you through the maze of possibilities regarding finances, budgeting, mortgage financing, and credit:

• The U.S Financial Literacy and Education Commission website;
• Buying a Home, by the U.S. Department of Housing and Urban Development;
• Money Smart, an Adult Education Program by the FDIC;
• The CreditSmart online curricula;
• The Credit Power website.

Some sites also provide information about shopping for mortgages and avoiding predatory lending:

• “Looking for the Best Mortgage” is a brochure on how to shop, compare, and negotiate the best deal on a home loan. This brochure is a joint effort of 11 federal agencies, including FTC, the Federal Reserve Board, HUD, and the Justice Department.
• “Don’t Be a Victim of Loan Fraud” is a HUD brochure on how to spor and avoid predatory lending.
• In conjunction with the FTC, NAR has issued “The Fair Credit Reporting Act and Your Credit History” (PDF file). This brochure contains frequently asked questions about credit reports and credit scores and information on how to address inaccuracies.
• The Federal Trade Commission has a predatory lending pamphlet: “Home Equity Scams: Buyer’s Beware”.

If I can answer any questions you still have after reading those links, or can help you get started on the road to home ownership, you are welcome to give me a call at (619) 370-4015.