Homebuyers urged to do research

06.04.09
By Timothy Jones

According to the latest statistics from the Mortgage Bankers Association, mortgage loan application volumes were up compared to one year ago and the group's Purchase Index also moved higher compared to figures from last week.

But with lower home prices enticing many to get back into the residential real estate market, some in the industry are advising consumers to proceed with caution.

Doing your homework about the broad real estate market, the specific home you are interested in and the incentives available are critical to making a sound financial decision, opines the Oregon Bankers Association (OBA).

In addition to researching the government's offer of $8,000 as a tax credit for first-time homebuyers, OBA says it may not be a bad idea to take a course about buying your first home or chatting with a community bank representative about financing options.

One of the biggest obstacles many individuals and couples are facing today is ensuring they have a solid credit score, which is one factor in securing a home loan.

In addition to reviewing your credit reports and trying to correct any errors that may appear, do some research on the different types of home loans and mortgage rates that are available - an informed consumer has a better chance of making a wise long-term decision about this complex financial product, says the OBA.

For some people about to purchase a home, this big life event coincides with other major milestones including marriage, starting a family or moving cities. Some of those mean you will be shelling out big bucks or putting purchases on credit, while others mean starting a savings account for future education costs for kids.

Regardless of your situation, the OBA advises acting prudently and taking a realistic look at the amount of debt you can take on. There are a number of different - and free - mortgage loan calculators on the internet where prospective buyers can calculate estimates of future payment obligations.

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