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Replies (14)
- Christine McDaniel, "Christine McDaniel"
- Contributions:414
With historically low interest rates it is a GREAT time to purchase a home. It is a long term investment. Talk to a local lender about the different loans that would be available to your personal situation. You may be eligible for a VA or USDA loan. Each person has a unique situation and the lender will give you all your options. They will also help you determine the loan based on the home you choose.
Good Luck,
Christine
Good Luck,
Christine
- Beth Grotelueschen, "bethghomes"
- Contributions:765
Interest rates are low & as long as you are considering the home as a long term investment (more than 5 yrs) I'd say it's a great time. If you are thinking more like 2 years, then rent. Talk with a lender regarding the credit- there are many different programs out there and different scenarios for each borrower. Good luck!
Beth G.
Beth G.
- seagrunge
- Contributions:3
Thanks Beth!
- seagrunge
- Contributions:3
Thanks Christine!
- Geordy Rostad, "geordy"
- Contributions:991
Real estate agents will nearly always answer that question by saying "It's a great time to buy because of XXX reason". Not trying to disrespect anyone but it's all too true. Even in the most recent hot seller's market, agents were egging on buyers using fear tactics i.e. "if you don't buy now, you might not be able to afford tomorrow's prices".
Truly it depends on your situation. Christine is correct in saying you need to sit down with a lender and go over your situation. If your wife's income alone is high enough, she MIGHT be able to qualify for the purchase on her own and then you will enjoy the benefit of the low interest rates. If not, you could get slammed with a far higher than market rate. No one knows what rates will do but I wouldn't rush out and buy right now if I could do better with 6 months of massaging my credit.
You could also shop around and/or renegotiate your rental. Surely a landlord charging $1600/mo knows that someone who can afford that price range can likely afford a mortgage just the same and the might be scared to lose a good renter in this economy.
Truly it depends on your situation. Christine is correct in saying you need to sit down with a lender and go over your situation. If your wife's income alone is high enough, she MIGHT be able to qualify for the purchase on her own and then you will enjoy the benefit of the low interest rates. If not, you could get slammed with a far higher than market rate. No one knows what rates will do but I wouldn't rush out and buy right now if I could do better with 6 months of massaging my credit.
You could also shop around and/or renegotiate your rental. Surely a landlord charging $1600/mo knows that someone who can afford that price range can likely afford a mortgage just the same and the might be scared to lose a good renter in this economy.
- Dave Skow, "daveskow"
- Contributions:1106
has your credit profile doesnt sound perfect , I would recommend getting pre approved to see if your " bad credit " has any impact on your buying ability and if it does , how does this affect things
you also dont mention down payment availability ? FHA loans allow 3.5% down payment ...do you ave this amount? or more?
regarding timing in Seattle ( W Wash) ..there is a ton of inventory to choose from and rates are good/ low ...amny local experts still see / predict a bit more of a drop in values in the area...timing is a moot point unless you know you are able to qualify so I would do the pre approval first thing (
- wetdawgs
- Contributions:26854
Agents always say "a great time to buy", so look at the background to their statements and ask "is it a great time to buy for me?" It might be, or it might be a poor time for you and your spouse.
First, you mention you have bad credit. Do you have a FICO score that goes along with that? If <640, it will be far harder for you to qualify for a loan so can you qualify on your wife's income alone.
Do you have a substantial downpayment saved up? With FHA, 3.5% plus closing costs are a starting, but remember houses can be black holes for money so having 3 to 4% of the house costs in your "house fund" in addition to the other pots of money mentioned will increase the probability that you continue to be a successful home owner. If you get your down payment >20%, you will be able to avoid the hefty monthly payments for PMI.
"interest rates are low" - a basic economic observation is that as interest rates rise, prices drop. As interest rates are near the historic lows and are likely to rise further, is it not expected prices will drop further?
Is Bellevue a stable market? Open a few properties such as the one randomly chosen here. . Look at the Zestimate graph and ask yourself if it has hit bottom and is stabilizing?
It might be the right time for you and your spouse to buy, but look at the whole picture so you don't have surprises.
First, you mention you have bad credit. Do you have a FICO score that goes along with that? If <640, it will be far harder for you to qualify for a loan so can you qualify on your wife's income alone.
Do you have a substantial downpayment saved up? With FHA, 3.5% plus closing costs are a starting, but remember houses can be black holes for money so having 3 to 4% of the house costs in your "house fund" in addition to the other pots of money mentioned will increase the probability that you continue to be a successful home owner. If you get your down payment >20%, you will be able to avoid the hefty monthly payments for PMI.
"interest rates are low" - a basic economic observation is that as interest rates rise, prices drop. As interest rates are near the historic lows and are likely to rise further, is it not expected prices will drop further?
Is Bellevue a stable market? Open a few properties such as the one randomly chosen here. . Look at the Zestimate graph and ask yourself if it has hit bottom and is stabilizing?
It might be the right time for you and your spouse to buy, but look at the whole picture so you don't have surprises.
- Sarah Heath, "NorthSeattleSarah"
- Contributions:37
Even as an agent I hate to use the old "It's a great time to buy" statement. Looking at the numbers, it is - interest rates are low but spiked a little recently and are predicted to rise a substantial enough amount by the end of this year to have an effect on buying power.
But, every person and situation is unique. Are you looking at this long-term? Do you think you might end up moving in a year or so, and forced into a situation where you might have to sell again? There are some great deals to be had out there right now, but if you're not planning on staying in the home more than a couple years, you're not likely to come out ahead from an investment side of things.
Your very best bet is to sit down with a lender (ask friends for referrals) and figure out what you qualify for before getting too involved in actually searching for a home. It might turn out that renting for another year or two suits your needs better. Or, it might turn out that you can find a mortgage for less than what you're paying in rent!
But, every person and situation is unique. Are you looking at this long-term? Do you think you might end up moving in a year or so, and forced into a situation where you might have to sell again? There are some great deals to be had out there right now, but if you're not planning on staying in the home more than a couple years, you're not likely to come out ahead from an investment side of things.
Your very best bet is to sit down with a lender (ask friends for referrals) and figure out what you qualify for before getting too involved in actually searching for a home. It might turn out that renting for another year or two suits your needs better. Or, it might turn out that you can find a mortgage for less than what you're paying in rent!
- Rob Graham, "Rob Graham"
- Contributions:171
Dear Grunge,
That's the million dollar question. The answer is NO ONE KNOWS, what is going to happen in the future. Everyone is guessing. I hear estimates all the time that we have several more years of trouble ahead and others who say the worst is well behind us now and things are improving. Everyone is guessing.
All we really know is that homes are at prices we haven't seen since 2005 and interest rates are really low. The longer you timeline for staying in the home the safer your investment is.
Best of luck to you. Also, get a hold of a good mortgage broker and pose all your money questions to them. They can steer you in the right direction.
That's the million dollar question. The answer is NO ONE KNOWS, what is going to happen in the future. Everyone is guessing. I hear estimates all the time that we have several more years of trouble ahead and others who say the worst is well behind us now and things are improving. Everyone is guessing.
All we really know is that homes are at prices we haven't seen since 2005 and interest rates are really low. The longer you timeline for staying in the home the safer your investment is.
Best of luck to you. Also, get a hold of a good mortgage broker and pose all your money questions to them. They can steer you in the right direction.
- dacolan
- Contributions:1073
Housing Market Looks Sickest in Cities That Once Seemed Immune
Few believed the housing market here would ever collapse. Now they wonder if it will ever stop slumping.
The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune — economically diversified cities where the boom was relatively restrained.
In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.
Few believed the housing market here would ever collapse. Now they wonder if it will ever stop slumping.
The rolling real estate crash that ravaged Florida and the Southwest is delivering a new wave of distress to communities once thought to be immune — economically diversified cities where the boom was relatively restrained.
In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix.
- Geordy Rostad, "geordy"
- Contributions:991
Rich,
How is anyone supposed to know what blog post you are talking about when they see this thread a year or two down the road? Next time, use a permalink to the specific post instead or just copy the content into here.
How is anyone supposed to know what blog post you are talking about when they see this thread a year or two down the road? Next time, use a permalink to the specific post instead or just copy the content into here.
- Rich Willard, "Rich67"
- Contributions:114
Geordy, thanks for the tip. If you like Bellevue, you'll love our parks. I am going to do a short blog post on Kelsey Creek Farm Park where we walked our dog this morning. Got some great photos while there. Also, Wilburton Hill Park gets high marks, great trails in the woods.
- Amy Queen, "Amy Queen"
- Contributions:80
Dear Sea,
In my opinion the low interest rate vs. the decline in pricing makes the list price a wash, so if you do find a home that fits your needs, and especially if you will be staying there more than 5 years and, most importantly, have the skills and desire to maintain or improve the property, then it's an ideal time to buy. Particularly in the close-in neighborhoods in Seattle. There are also many great buys on the East Side, as the prices there have come down so much that there are many steals to be had. Good luck, and keep educating yourself!
In my opinion the low interest rate vs. the decline in pricing makes the list price a wash, so if you do find a home that fits your needs, and especially if you will be staying there more than 5 years and, most importantly, have the skills and desire to maintain or improve the property, then it's an ideal time to buy. Particularly in the close-in neighborhoods in Seattle. There are also many great buys on the East Side, as the prices there have come down so much that there are many steals to be had. Good luck, and keep educating yourself!
- Robin Gentry MLO113119 CL 36130, "Robin Gentry"
- Contributions:46
Have either of you purchased home before? within the last 3 years? If not there are some great loan programs out there. With your income you could truly utilize some tax relief. I am not an accountant and you should discuss with your tax advisor. If you would like to get preapproved please feel free to contact me so we can establish a sale price that you would qualify for.
I have been in the business for 14 yrs office is in Mill Creek.
Let me know if I can help
[content removed by moderator]
I have been in the business for 14 yrs office is in Mill Creek.
Let me know if I can help
[content removed by moderator]
is it a good time to buy a house in the Seattle-Bellevue area?
SK
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