Why buy a home rather than rent? 

Here are some frequently cited reasons for buying a house:

  • *You need a tax break. The mortgage interest deduction can make home ownership very appealing.       
  • *Your monthly payment can build equity, rather than paying rent that is building equity for your landlord.       
  • *Long-term price appreciation can also provide for building substantial future net worth. 
  • *Freedom to make changes, improvements and decorating to suit YOUR taste!  And benefit from the value of improvements when you sell the home.
  • *Never worry about your Lease expiring unexpectedly

Where do I get information on housing market stats?

A real estate agent is a good source for finding information on the local housing market.  Choose an agent in your area with knowledge of the local markets.  Most stats can be extracted from data sources used by Agents who are members of the local MLS and the local Board of Realtors.  Don't be hesitant to ask!

What low-down programs might be available?

Several programs are designed to help potential buyers overcome two of the most common obstacles to home ownership: low savings and a modest income.  In addition to multiple variations of FHA loans, and VA loans for veterans, there are packages available for teachers, first responders as well as specialty loans targeting specific low-income or low-growth areas.  Working with the right mortgage broker is often the key to finding the best solution for your needs.  Ask your Agent for several recommendations, if you are not familiar with one or more you can speak with.

How long do bankruptcies/foreclosures stay on a credit report?

Bankruptcies and foreclosures can remain on a credit report for 7 to 10 years. Some lenders will consider a borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender's decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be able to be more lenient. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible.

Michael Harkins
Michael Harkins
27802 Vista Del Lago, Suite E2 Mission Viejo CA 92692