The days of the zero-down, no documentation, sub-prime adjustable rate loans are quickly disappearing. The sub-prime mortgage disaster got a lot of unqualified buyers into the raging housing market. During the past few years, lenders granted mortgage loans to just about anyone with a pulse, including those who couldn't or wouldn't prove their income, those with no down payment and even those with very poor credit.
But today, with foreclosures climbing, almost all lenders have re-enacted the tight lending restrictions that were common decades ago. The last thing any homeowner wants is a ballooning mortgage rate he or she can't afford. Today, it's a great time to buy a home because "real financing" is back!
The real estate "flippers" are gone. During the real estate boom, many people and investors bought homes on speculation with the hopes of "flipping" the house for a big profit. When non-owner-occupied buyers are in the marketplace, prices inflate and affordability declines. Today is a great time to buy a home without having to compete with investors.
If you are waiting on the sidelines to purchase a home for the lowest possible price, you will only know that prices have changed after home prices have gone up. Buying a home is a lot like having a baby. If you wait for the perfect moment in time, the cradle will always be empty. Sometimes you just have to make the leap. You'll be glad you bought in a buyer's market
