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First Time Homebuyers Struggling to Make a Purchase
Since the inception of the first-time homebuyer's tax credit, many prospective buyers have jumped on the bandwagon, so to speak, to own a home, and enter the real estate game. With the deadline of November 30th looming even closer, buyers are now motivated more than ever to squeeze their purchase in before it's too late. What some buyers may not realize, however, is that a real estate market frought with foreclosures and distressed properties can make that purchase tough to come by.
Several reasons can be attributed for the challenges that a buyer in today's market may face. One is that lenders have placed increased scrutiny and regulations on prospective buyers looking for a mortgage. Another is foreclosed homes that require extensive repairs fall outside the guidelines for federally backed mortgages. Combine this with lengthy short sale purchases, lower-than-expected home appraisals, and cash-only investors flooding the market, and you have a recipe for frustration and disappointment.
Most experts in the Real Estate industry still feel that the the tax credit will do more good than harm, but buyers will really have to grit their teeth and hold on for the ride in order to get what they want. In this market, knowledge (and a good realtor) is key to navigating the rules and guidelines to be successful in buying a home.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
