We are looking into buying our first home. Bc of mortgage failures now, how hard will it be, bc we are young?
All of these subrime mortgage failures seem to have such a huge effect on young people, because well, niether or us have ever bought anything before so we are more "at risk." My bro is in coporate lending with Wachovia and he says bc of all of the foreclosures, banks have tightened their belts with lending. What kind of effect does that have on any young couple who dont have bad credit, just no credit really!
- Anonymous1 decade agoFavorite Answer
I have to answer this question in a round about way.
The proceedure for buying real estate, especially for young people, was to figure out their annual income and loan out no more than two and a half times that figure.
An example would be, let's say you and your spouce earn a hundred thousand dollars per year, then you can carry a mortgage for two hundred and fifty thousand dollars.
If the house costs two hundred and seventy thousand, you are expected to come up with the difference, which would be the down payment.
That was then, but the morons who run finance companies and banks decided to abandon standards and loan out to anyone because real estate kept going higher and higher, but when somebody coughed, guess what, it all came tumbling down.
Now the morons (C.E.O's) are losing their jobs, and banks are tightening up, and there is no way of knowing how it will all turn out.
However, people are still buying real estate, and they should be getting bargains by now, so if you fit somewhere into that standard I gave you, then there should be no reason to delay.
Just make sure you are getting good property at a decent price.
Nobody should be denied credit except the morons who created this mess.Source(s): Licensed to sell real esatate for over fifteen years.
- 1 decade ago
Young has nothing to do with it, now is the time to buy. Credit is a big plus, be careful of ones you do choose shop around and shop somemore but do not let them keep running your credit everytime you have your credit pulled that cost you points on your score. Check with some of your family or friends and see what they advise what about your local bank they will look at how long you have had your job and your debt to income ratio meaning that how much you makes does it exceed your bills? Put a pen to it before you jump into something. Do you have a checking savings account can you put any money down depending on what area you are from or I could tell you a couple of places.
- Anonymous1 decade ago
There are still a number of programs such as My Community and various FHA programs that allow first time homebuyers with little to know credit to buy homes.
Call up your bank and ask about them.
Plus, as much as this doesn’t get through the head of the modern 22 and 23 year old, THERE’S NOTHING WRONG WITH RENTING FOR A FEW YEARS AND SAVING UP FOR A DOWNPAYMENT.