Gene Mundt - Let's Talk Mortgages & Real Estate!

Fact:

• 84% of Americans still believe that owning a home makes more sense than renting. (Even 68% of renters believe owning makes more sense).
• Buying a home is considered safer than buying stocks by over 3 times the number of people (64% vs 17%).

          Statistics Courtesy of: National Housing Survey by Fannie Mae/4th Quarter 2010 Report

    

    The above statistics provided by the 4th Quarter 2010 Report of Fannie Mae's "National Housing Survey" prove ... Americans are still in love with the thought of owning their own homes.

     I think it's safe to say that the belief in their ability TO own has been shaken by the current housing mess ... but these Fannie Mae statistics tell us the DESIRE to own is still there.  It's currently the personal finances of home owners, current housing values, and the path to home ownership that scares potential home buyers away.

     That path to home ownership, once paved in gold ... is now more like a dirt road.  Pitted.  Full of pot holes.  Sometimes muddy.  Other times completely impassable. The path definitely needs to be repaired and restored.  It's going to take some effort ... and as we've seen ... some time too.

     Home Buyers need to understand though, that the path is never going to be made of gold again ... nor should it be.  We have seen what damages that path brought and we are paying the price currently.

     I'd liken the future path to home ownership to a "toll road".  More well-maintained than the current path.  More easily navigatable.  Probably "under construction" often as corrections are needed and made.  Definitely better policed.  And ... it will have "toll" fees.  In otherwords, the path will be easier to access and move along than currently, there will be chances for re-fueling along the way, but a few challenges and tolls will have to be paid too.

     And just like a car's driver must assess the benefits of entering and then navigating a real tollway ... potential home buyers will have to assess whether they  wish to enter and navigate the tollway to home ownership.  Some will choose to turn their personal wheel towards that path ... others will drive on by.

     Maybe visualizing it this way will help ...

     Visualize in your mind a line of potential home buyers driving along a road in their cars.  A sign on the side of this road says "Tollway to Home Ownership Ahead - 1 mile".  These potential buyers now have a mile to make a decision.  Do they take that entrance to the "Tollway to Home Ownership"?  Or do they just drive on by that entrance?

     Part of their decision is going to be based on their desire.  If we can believe the Fannie Mae survey results, the majority of potential home buyers are leaning towards taking that "tollway". Their hearts are in it ...

     It's my job as a professional mortgage lender to assist potential home buyers in their decision-making process.  I need to guide them and help them to discover their personal  sound valid facts and reasonings on which to base their home buying decision.  Once they have these at their disposal, they can then decide whether they are "pro" or "con" to buying a home ... or entering that home buying "tollway" and moving ahead in the process.

     This is my message to potential home buyers.  Simply ... the decision to buy a home and seek mortgage lending is your highly personal and individual decision. It must be based on:

• Solid facts regarding your personal credit and FICO Scores
• Your employment ... both currently and what you think you can project for the future.  
• Documentable financial history. These days, if you cannot document, your hope for approval is extremely limited.
• The property being purchased. Certain properties are currently more challenged. Work with real estate professionals that will know of these challenges up-front and that will guide you through your property choices.

     Potential home buyers need to start thinking, start gathering facts and documents, start planning for their home buying and mortgage financing decision in advance.  Just as on an actual highway, making a last-minute decision to enter a "tollway" holds a real risk of accident and trouble.  At minimum, valuable time is lost when it's necessary to turn around and drive back to the entrance.  The same thing can be said about preparations for home buying ...

     So, if you are one of the 84% of Americans that believe that owning a home makes more sense than renting ... GET ON THE "TOLLWAY" TOWARDS HOME OWNERSHIP NOW.   Be prepared.

     Those "tolls" you might have to pay on a path to home ownership??  Some of the "tolls" can be:

•      Home Buyers must produce more documentation of all types, especially financial.
•      Mortgage Financing can take longer.  Be prepared for that ...
•      Property being purchased may be scrutinized more than in the past.  
•      Home Buyers may have to comply to more underwriting demands.  (The faster compliance is accomplished, the faster you move through mortgage processing).
•      There can be demands for more active participation on the home buyer's part ... and far more communications.  (Be aware and mentally ready for this ... being prepared does help).
•      Changing down payment requirements may be ahead.  Stay educated ...
•      The costs of obtaining a mortgage may be changing, as well.  Again, stay educated and aware ...

     The "tolls" that a home buyer pays when navigating the path to home ownership have increased in the last few years.  No doubt about it when you take into consideration the challenges of obtaining a home mortgage.  But with pre-planning and a knowledgeable, professional mortgage lender's guidance, the "tolls" are easier to tackle and the "tollway" more easily navigated.

     Should you think you might ever want to buy a home down the road ... start planning for home ownership today.  Get on your personal "tollway" now.  Contact me through my website at:  http://www.genemundt.com/Contact-Info.html.   We'll work together towards successful preparations and then purchase of your future home. 

     Good luck ... and let me know if I can be of assistance!