Need Help Buying my first place

[Looking2buysoon]

[quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.

[Coronita]

[quote=Looking2buysoon][quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

I think it would be prudent for you to wait. What bothers me is you have no savings…No room for error….If you buy a place, unexpected expenses are going to come up….Work on saving growing your money first. Buy the house (which would be a bling item) after you have sufficient money.

[Coronita]

[quote=Looking2buysoon][quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

I think it would be prudent for you to wait. What bothers me is you have no savings…No room for error….If you buy a place, unexpected expenses are going to come up….Work on saving growing your money first. Buy the house (which would be a bling item) after you have sufficient money.

[Coronita]

[quote=Looking2buysoon][quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

I think it would be prudent for you to wait. What bothers me is you have no savings…No room for error….If you buy a place, unexpected expenses are going to come up….Work on saving growing your money first. Buy the house (which would be a bling item) after you have sufficient money.

[Coronita]

[quote=Looking2buysoon][quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

I think it would be prudent for you to wait. What bothers me is you have no savings…No room for error….If you buy a place, unexpected expenses are going to come up….Work on saving growing your money first. Buy the house (which would be a bling item) after you have sufficient money.

[Coronita]

[quote=Looking2buysoon][quote=threadkiller]How much are you currently paying in rent. Do you make 4500 or take home 4500, big difference, at least for me(making 5200, taking home 3000). Check out Zillow’s rent estimate vs. zestimate. If you can find a place that you qualify for, where PITI is near what you are paying for rent or even a few hundred more then I would definitely give it a try. Your FICO seems low to me, I think that is the lowest FICO that you can get a mortgage with. You do not mention how much you have in savings. I think Suzy Orman would deny you, but I personally think it is a good time to buy. I know renters and landlords don’t like to invest in their places, but as a “homeowner” it will probably be your strongest urge after “buying”.[/quote]

I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa.

My Fico Is low because I dont have enough credit and the 3 paid charge offs from 4-5 years ago still show up. (All items have been paid and the highest one was $1,200)

I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

I think it would be prudent for you to wait. What bothers me is you have no savings…No room for error….If you buy a place, unexpected expenses are going to come up….Work on saving growing your money first. Buy the house (which would be a bling item) after you have sufficient money.

[eavesdropper]

[quote=Looking2buysoon] I hate paying rent everymonth and feel desperate to try and buy something soon.[/quote]

There’s your answer. If you are “feel[ing] desperate”, you should absolutely not be engaging in any voluntary financial transaction of significance, including the purchase of a home.

I know many people in your age group (in fact, I have kids your age), and many of them also seem very anxious to buy, citing that same complaint about paying rent. Many of them, while aware of the real estate meltdown, seem to only see it from the view of a buyer. In this type of market, where a financial turndown can bring unforeseen opportunities for bargains, a buyer has to look at the transaction from the viewpoint of a seller.

I’m figuring that your mortgage payment (without taxes and insurance) will be around $1800 to $2K per month. Ask yourself this question: what will happen if I lose my job? Unemployment will barely cover food, utilities, and gas. Where will you get the mortgage payment?

Ask yourself how you will feel in 3 years if the house you buy today for $300K can be sold for no more than $230,000. Don’t let anyone tell you that won’t happen. Home prices have been dropping in all major metro areas since 2007, and have never risen during that time. Say you get a great job offer making 35% more. Too bad, you’ve got that house hanging around your neck (and don’t let anyone tell you that the new employer will buy your house. Those days are long gone!)

For many people in the past, there were two major financial reasons for taking the risk of buying a house. One was the mortgage interest tax deduction, the other was the value of the purchase as a financial investment. I don’t recommend that you use either of these as a justification. The tax advantage to you is not outweighed by the risk, and the uncertainty of the housing market does not bode well for its future value as an investment.

Aside from all of the above reasons, you shouldn’t buy a house now because the odds are against you still owning this house in five years. Whether you are making $4500 a month gross or net, you will have an extraordinarily difficult time keeping a $300,000 house. You have $5,000 in unsecured credit card debt (which, in light of your charge-off history, are probably incurring interest at a very rapid rate). Your monthly cell phone and car insurance bills will be joined by those for homeowners insurance, heat, electricity, water/sewer, cable TV/internet, and real estate taxes. And this is before you move in fully and things start to leak, or break down, or malfunction (oops! Can’t call the landlord.)

I do understand your desire for a home of your own (I can remember my own). But do yourself a favor and wait a few years. Pay off your debt and save some money. In the meantime, go to open houses (even ones in which you’re not particularly interested) to acquaint yourself with the differences between properties, and determine what makes a good value and what is really important to you in a home. Do regular searches on the MLS, and, again, spread your search into areas beyond your current interest to see what your money will buy you in one area over another. If you have the time and money, you may even want to take a course and get your real estate license. Take this time to accumulate wealth and to educate yourself about the complexities of real estate. I can guarantee that you will not regret it.

[eavesdropper]

[quote=Looking2buysoon] I hate paying rent everymonth and feel desperate to try and buy something soon.[/quote]

There’s your answer. If you are “feel[ing] desperate”, you should absolutely not be engaging in any voluntary financial transaction of significance, including the purchase of a home.

I know many people in your age group (in fact, I have kids your age), and many of them also seem very anxious to buy, citing that same complaint about paying rent. Many of them, while aware of the real estate meltdown, seem to only see it from the view of a buyer. In this type of market, where a financial turndown can bring unforeseen opportunities for bargains, a buyer has to look at the transaction from the viewpoint of a seller.

I’m figuring that your mortgage payment (without taxes and insurance) will be around $1800 to $2K per month. Ask yourself this question: what will happen if I lose my job? Unemployment will barely cover food, utilities, and gas. Where will you get the mortgage payment?

Ask yourself how you will feel in 3 years if the house you buy today for $300K can be sold for no more than $230,000. Don’t let anyone tell you that won’t happen. Home prices have been dropping in all major metro areas since 2007, and have never risen during that time. Say you get a great job offer making 35% more. Too bad, you’ve got that house hanging around your neck (and don’t let anyone tell you that the new employer will buy your house. Those days are long gone!)

For many people in the past, there were two major financial reasons for taking the risk of buying a house. One was the mortgage interest tax deduction, the other was the value of the purchase as a financial investment. I don’t recommend that you use either of these as a justification. The tax advantage to you is not outweighed by the risk, and the uncertainty of the housing market does not bode well for its future value as an investment.

Aside from all of the above reasons, you shouldn’t buy a house now because the odds are against you still owning this house in five years. Whether you are making $4500 a month gross or net, you will have an extraordinarily difficult time keeping a $300,000 house. You have $5,000 in unsecured credit card debt (which, in light of your charge-off history, are probably incurring interest at a very rapid rate). Your monthly cell phone and car insurance bills will be joined by those for homeowners insurance, heat, electricity, water/sewer, cable TV/internet, and real estate taxes. And this is before you move in fully and things start to leak, or break down, or malfunction (oops! Can’t call the landlord.)

I do understand your desire for a home of your own (I can remember my own). But do yourself a favor and wait a few years. Pay off your debt and save some money. In the meantime, go to open houses (even ones in which you’re not particularly interested) to acquaint yourself with the differences between properties, and determine what makes a good value and what is really important to you in a home. Do regular searches on the MLS, and, again, spread your search into areas beyond your current interest to see what your money will buy you in one area over another. If you have the time and money, you may even want to take a course and get your real estate license. Take this time to accumulate wealth and to educate yourself about the complexities of real estate. I can guarantee that you will not regret it.

[eavesdropper]

[quote=Looking2buysoon] I hate paying rent everymonth and feel desperate to try and buy something soon.[/quote]

There’s your answer. If you are “feel[ing] desperate”, you should absolutely not be engaging in any voluntary financial transaction of significance, including the purchase of a home.

I know many people in your age group (in fact, I have kids your age), and many of them also seem very anxious to buy, citing that same complaint about paying rent. Many of them, while aware of the real estate meltdown, seem to only see it from the view of a buyer. In this type of market, where a financial turndown can bring unforeseen opportunities for bargains, a buyer has to look at the transaction from the viewpoint of a seller.

I’m figuring that your mortgage payment (without taxes and insurance) will be around $1800 to $2K per month. Ask yourself this question: what will happen if I lose my job? Unemployment will barely cover food, utilities, and gas. Where will you get the mortgage payment?

Ask yourself how you will feel in 3 years if the house you buy today for $300K can be sold for no more than $230,000. Don’t let anyone tell you that won’t happen. Home prices have been dropping in all major metro areas since 2007, and have never risen during that time. Say you get a great job offer making 35% more. Too bad, you’ve got that house hanging around your neck (and don’t let anyone tell you that the new employer will buy your house. Those days are long gone!)

For many people in the past, there were two major financial reasons for taking the risk of buying a house. One was the mortgage interest tax deduction, the other was the value of the purchase as a financial investment. I don’t recommend that you use either of these as a justification. The tax advantage to you is not outweighed by the risk, and the uncertainty of the housing market does not bode well for its future value as an investment.

Aside from all of the above reasons, you shouldn’t buy a house now because the odds are against you still owning this house in five years. Whether you are making $4500 a month gross or net, you will have an extraordinarily difficult time keeping a $300,000 house. You have $5,000 in unsecured credit card debt (which, in light of your charge-off history, are probably incurring interest at a very rapid rate). Your monthly cell phone and car insurance bills will be joined by those for homeowners insurance, heat, electricity, water/sewer, cable TV/internet, and real estate taxes. And this is before you move in fully and things start to leak, or break down, or malfunction (oops! Can’t call the landlord.)

I do understand your desire for a home of your own (I can remember my own). But do yourself a favor and wait a few years. Pay off your debt and save some money. In the meantime, go to open houses (even ones in which you’re not particularly interested) to acquaint yourself with the differences between properties, and determine what makes a good value and what is really important to you in a home. Do regular searches on the MLS, and, again, spread your search into areas beyond your current interest to see what your money will buy you in one area over another. If you have the time and money, you may even want to take a course and get your real estate license. Take this time to accumulate wealth and to educate yourself about the complexities of real estate. I can guarantee that you will not regret it.

[eavesdropper]

[quote=Looking2buysoon] I hate paying rent everymonth and feel desperate to try and buy something soon.[/quote]

There’s your answer. If you are “feel[ing] desperate”, you should absolutely not be engaging in any voluntary financial transaction of significance, including the purchase of a home.

I know many people in your age group (in fact, I have kids your age), and many of them also seem very anxious to buy, citing that same complaint about paying rent. Many of them, while aware of the real estate meltdown, seem to only see it from the view of a buyer. In this type of market, where a financial turndown can bring unforeseen opportunities for bargains, a buyer has to look at the transaction from the viewpoint of a seller.

I’m figuring that your mortgage payment (without taxes and insurance) will be around $1800 to $2K per month. Ask yourself this question: what will happen if I lose my job? Unemployment will barely cover food, utilities, and gas. Where will you get the mortgage payment?

Ask yourself how you will feel in 3 years if the house you buy today for $300K can be sold for no more than $230,000. Don’t let anyone tell you that won’t happen. Home prices have been dropping in all major metro areas since 2007, and have never risen during that time. Say you get a great job offer making 35% more. Too bad, you’ve got that house hanging around your neck (and don’t let anyone tell you that the new employer will buy your house. Those days are long gone!)

For many people in the past, there were two major financial reasons for taking the risk of buying a house. One was the mortgage interest tax deduction, the other was the value of the purchase as a financial investment. I don’t recommend that you use either of these as a justification. The tax advantage to you is not outweighed by the risk, and the uncertainty of the housing market does not bode well for its future value as an investment.

Aside from all of the above reasons, you shouldn’t buy a house now because the odds are against you still owning this house in five years. Whether you are making $4500 a month gross or net, you will have an extraordinarily difficult time keeping a $300,000 house. You have $5,000 in unsecured credit card debt (which, in light of your charge-off history, are probably incurring interest at a very rapid rate). Your monthly cell phone and car insurance bills will be joined by those for homeowners insurance, heat, electricity, water/sewer, cable TV/internet, and real estate taxes. And this is before you move in fully and things start to leak, or break down, or malfunction (oops! Can’t call the landlord.)

I do understand your desire for a home of your own (I can remember my own). But do yourself a favor and wait a few years. Pay off your debt and save some money. In the meantime, go to open houses (even ones in which you’re not particularly interested) to acquaint yourself with the differences between properties, and determine what makes a good value and what is really important to you in a home. Do regular searches on the MLS, and, again, spread your search into areas beyond your current interest to see what your money will buy you in one area over another. If you have the time and money, you may even want to take a course and get your real estate license. Take this time to accumulate wealth and to educate yourself about the complexities of real estate. I can guarantee that you will not regret it.

[eavesdropper]

[quote=Looking2buysoon] I hate paying rent everymonth and feel desperate to try and buy something soon.[/quote]

There’s your answer. If you are “feel[ing] desperate”, you should absolutely not be engaging in any voluntary financial transaction of significance, including the purchase of a home.

I know many people in your age group (in fact, I have kids your age), and many of them also seem very anxious to buy, citing that same complaint about paying rent. Many of them, while aware of the real estate meltdown, seem to only see it from the view of a buyer. In this type of market, where a financial turndown can bring unforeseen opportunities for bargains, a buyer has to look at the transaction from the viewpoint of a seller.

I’m figuring that your mortgage payment (without taxes and insurance) will be around $1800 to $2K per month. Ask yourself this question: what will happen if I lose my job? Unemployment will barely cover food, utilities, and gas. Where will you get the mortgage payment?

Ask yourself how you will feel in 3 years if the house you buy today for $300K can be sold for no more than $230,000. Don’t let anyone tell you that won’t happen. Home prices have been dropping in all major metro areas since 2007, and have never risen during that time. Say you get a great job offer making 35% more. Too bad, you’ve got that house hanging around your neck (and don’t let anyone tell you that the new employer will buy your house. Those days are long gone!)

For many people in the past, there were two major financial reasons for taking the risk of buying a house. One was the mortgage interest tax deduction, the other was the value of the purchase as a financial investment. I don’t recommend that you use either of these as a justification. The tax advantage to you is not outweighed by the risk, and the uncertainty of the housing market does not bode well for its future value as an investment.

Aside from all of the above reasons, you shouldn’t buy a house now because the odds are against you still owning this house in five years. Whether you are making $4500 a month gross or net, you will have an extraordinarily difficult time keeping a $300,000 house. You have $5,000 in unsecured credit card debt (which, in light of your charge-off history, are probably incurring interest at a very rapid rate). Your monthly cell phone and car insurance bills will be joined by those for homeowners insurance, heat, electricity, water/sewer, cable TV/internet, and real estate taxes. And this is before you move in fully and things start to leak, or break down, or malfunction (oops! Can’t call the landlord.)

I do understand your desire for a home of your own (I can remember my own). But do yourself a favor and wait a few years. Pay off your debt and save some money. In the meantime, go to open houses (even ones in which you’re not particularly interested) to acquaint yourself with the differences between properties, and determine what makes a good value and what is really important to you in a home. Do regular searches on the MLS, and, again, spread your search into areas beyond your current interest to see what your money will buy you in one area over another. If you have the time and money, you may even want to take a course and get your real estate license. Take this time to accumulate wealth and to educate yourself about the complexities of real estate. I can guarantee that you will not regret it.

[eavesdropper]

[quote=Looking2buysoon] I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa….I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

L2B, you will not have much in the way of monthly fiscal wiggle room if you buy a $300,000 property. You may well end up like many people in America with their real estate purchase feeling like an onerous burden instead of a home.

Your last line is very telling, but keep in mind that there have been millions of Americans who felt the same way at the height of the housing boom and who overextended themselves financially to achieve home ownership. A large percentage of these people found out who really owned their homes when they were unable to make the payments, and foreclosure proceedings were initiated against them.

As I mentioned earlier, prices have been falling since 2007, and no one is able to say for sure when they are going to start going in the other direction or whether they will keep going up once they do. Some experts are predicting several more years of declining prices; even the optimistic ones are being more cautious in making predictions than they did in 2009 or 2010.

However, when prices do begin to rise again, they will not rise at the same rate as they did in 2003, 2004, and 2005. So, as I mentioned, use this time to accumulate some money and educate yourself, so that when prices do start to go up, you’ll be in a position to make some well-thought-out moves.

[eavesdropper]

[quote=Looking2buysoon] I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa….I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

L2B, you will not have much in the way of monthly fiscal wiggle room if you buy a $300,000 property. You may well end up like many people in America with their real estate purchase feeling like an onerous burden instead of a home.

Your last line is very telling, but keep in mind that there have been millions of Americans who felt the same way at the height of the housing boom and who overextended themselves financially to achieve home ownership. A large percentage of these people found out who really owned their homes when they were unable to make the payments, and foreclosure proceedings were initiated against them.

As I mentioned earlier, prices have been falling since 2007, and no one is able to say for sure when they are going to start going in the other direction or whether they will keep going up once they do. Some experts are predicting several more years of declining prices; even the optimistic ones are being more cautious in making predictions than they did in 2009 or 2010.

However, when prices do begin to rise again, they will not rise at the same rate as they did in 2003, 2004, and 2005. So, as I mentioned, use this time to accumulate some money and educate yourself, so that when prices do start to go up, you’ll be in a position to make some well-thought-out moves.

[eavesdropper]

[quote=Looking2buysoon] I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa….I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

L2B, you will not have much in the way of monthly fiscal wiggle room if you buy a $300,000 property. You may well end up like many people in America with their real estate purchase feeling like an onerous burden instead of a home.

Your last line is very telling, but keep in mind that there have been millions of Americans who felt the same way at the height of the housing boom and who overextended themselves financially to achieve home ownership. A large percentage of these people found out who really owned their homes when they were unable to make the payments, and foreclosure proceedings were initiated against them.

As I mentioned earlier, prices have been falling since 2007, and no one is able to say for sure when they are going to start going in the other direction or whether they will keep going up once they do. Some experts are predicting several more years of declining prices; even the optimistic ones are being more cautious in making predictions than they did in 2009 or 2010.

However, when prices do begin to rise again, they will not rise at the same rate as they did in 2003, 2004, and 2005. So, as I mentioned, use this time to accumulate some money and educate yourself, so that when prices do start to go up, you’ll be in a position to make some well-thought-out moves.

[eavesdropper]

[quote=Looking2buysoon] I pay $1,455 rent each month for a one bedroom apartment in Kearny Mesa….I only have arond 2k in savings. Bring home just under 4,500 a month after taxes, medical and 401k.

I feel like if I dont buy something now prices are going to go up and I wont be able to afford anything west of the 15 freeway.[/quote]

L2B, you will not have much in the way of monthly fiscal wiggle room if you buy a $300,000 property. You may well end up like many people in America with their real estate purchase feeling like an onerous burden instead of a home.

Your last line is very telling, but keep in mind that there have been millions of Americans who felt the same way at the height of the housing boom and who overextended themselves financially to achieve home ownership. A large percentage of these people found out who really owned their homes when they were unable to make the payments, and foreclosure proceedings were initiated against them.

As I mentioned earlier, prices have been falling since 2007, and no one is able to say for sure when they are going to start going in the other direction or whether they will keep going up once they do. Some experts are predicting several more years of declining prices; even the optimistic ones are being more cautious in making predictions than they did in 2009 or 2010.

However, when prices do begin to rise again, they will not rise at the same rate as they did in 2003, 2004, and 2005. So, as I mentioned, use this time to accumulate some money and educate yourself, so that when prices do start to go up, you’ll be in a position to make some well-thought-out moves.

[Author]

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