Forum Replies Created
-
AuthorPosts
-
(former)FormerSanDiegan
ParticipantI don’t think we are at a pricing bottom. However, I don’t think the market will look/feel/seem much different than it does now when that pricing bottom occurs. It won’t be obvious at the time that it has bottomed, only in retrospect.
ParticipantMarion, you are not really in a position to buy right now if you don’t have reserves and a down payment.
Most first-time buyers don’t have the luxury of both a large down payment (e.g. 20%) AND 6 months of cash reserves. If you can find a decent loan at 5% down, then from a first-time buyer’s perspective it would be better to have larger reserves than to make a larger down payment (assuming affordable payments). That shifts more of the risk onto the lender than the borrower.
ParticipantMarion, you are not really in a position to buy right now if you don’t have reserves and a down payment.
Most first-time buyers don’t have the luxury of both a large down payment (e.g. 20%) AND 6 months of cash reserves. If you can find a decent loan at 5% down, then from a first-time buyer’s perspective it would be better to have larger reserves than to make a larger down payment (assuming affordable payments). That shifts more of the risk onto the lender than the borrower.
ParticipantMarion, you are not really in a position to buy right now if you don’t have reserves and a down payment.
Most first-time buyers don’t have the luxury of both a large down payment (e.g. 20%) AND 6 months of cash reserves. If you can find a decent loan at 5% down, then from a first-time buyer’s perspective it would be better to have larger reserves than to make a larger down payment (assuming affordable payments). That shifts more of the risk onto the lender than the borrower.
ParticipantMarion, you are not really in a position to buy right now if you don’t have reserves and a down payment.
Most first-time buyers don’t have the luxury of both a large down payment (e.g. 20%) AND 6 months of cash reserves. If you can find a decent loan at 5% down, then from a first-time buyer’s perspective it would be better to have larger reserves than to make a larger down payment (assuming affordable payments). That shifts more of the risk onto the lender than the borrower.
ParticipantMarion, you are not really in a position to buy right now if you don’t have reserves and a down payment.
Most first-time buyers don’t have the luxury of both a large down payment (e.g. 20%) AND 6 months of cash reserves. If you can find a decent loan at 5% down, then from a first-time buyer’s perspective it would be better to have larger reserves than to make a larger down payment (assuming affordable payments). That shifts more of the risk onto the lender than the borrower.
ParticipantI won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.
I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.
ParticipantI won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.
I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.
ParticipantI won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.
I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.
ParticipantI won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.
I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.
ParticipantI won’t be putting 20% down either, that is for people who are established in their careers and have been able to save. I’m not there yet. So, I’ll be going FHA and taking advantage of down payment assistance. The builders are pushing that right now.
I agree that FHA or similar low-down payment loans (e.g. 3-5%) are good for “first-time” buyers or those starting over. However, having a cash cushion is vital. Probably the worst thing that can happen for a first time buyer in the next couple of years would be to get a great deal on a property, then run into a short-term financial issue (e.g. changing jobs, medical issue, etc) and then lose your house just before appreciation rears its head again in 2010 or 2011 or later. All because you didn’t save up at least a couple months worth of emergency cash.
ParticipantAfter buying would you have 6 months worth of living expenses (emergency funds) available? If not, do not buy at this point. For buyers in that situation you should at least wait until a turn in the market is underway.
If you do have sufficient cash reserves after buying, then I would neither buy not or wait a year. I would buy in October. (probably 2008 if you “have to”, but maybe 2009 will be better).
ParticipantAfter buying would you have 6 months worth of living expenses (emergency funds) available? If not, do not buy at this point. For buyers in that situation you should at least wait until a turn in the market is underway.
If you do have sufficient cash reserves after buying, then I would neither buy not or wait a year. I would buy in October. (probably 2008 if you “have to”, but maybe 2009 will be better).
ParticipantAfter buying would you have 6 months worth of living expenses (emergency funds) available? If not, do not buy at this point. For buyers in that situation you should at least wait until a turn in the market is underway.
If you do have sufficient cash reserves after buying, then I would neither buy not or wait a year. I would buy in October. (probably 2008 if you “have to”, but maybe 2009 will be better).
-
AuthorPosts
