In today’s down housing market, many potential homebuyers are excited about the opportunities available to them. Now, more than ever before, you can get “more house” for your buck. If you’ve got the cash for a down payment, what have you got to lose, right?
The Scary Term: Foreclosure
When it comes to offering mortgage cautions, the main point we can’t stress enough is foreclosure. We aren’t trying to rain on your homebuyer parade, but a recent study revealed that 26% of first quarter home sales for 2012 were a result of foreclosure. We can guarantee you that 99% of those foreclosed-upon homeowners had no intention of ever being in their current situation.
Many homebuyers have the funds for a down payment; many of them also have a secure means of income. However, circumstances change swiftly in this volatile economy. When your economic conditions change, remember that your mortgage doesn’t change with you. Sure, you can refinance and try loan modification. However, these processes can be expensive, and are only valuable in the long run. They usually won’t save you either.
So, if you’re looking to buy a home. Consider our mortgage cautions to be sure you aren’t the next foreclosure victim! Buying a home isn’t nearly so fun when your mortgage holder forecloses on you two years later. Also, when you’re faced with foreclosure, it’s likely you’ll have other problems attached, as well: bad credit, debt, possible threats of bankruptcy.
Be sure you can afford your mortgage before securing it both now and in the event of unexpected financial hardship. The easier it is to make your payment, the less your risk of foreclosure!