So you think you can't afford to buy a house? Never say never...again. 😉

Thursday Mar 14th, 2019

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I'm sure anyone that watches movies knows the actor Sean Connery, best known for his iconic role as James Bond and movies like Dr. No, From Russia with Love, Goldfinger,  and what he vowed was his last Bond, Diamonds are Forever. That was until one of the non-credited writers for Thunderball decided to produce a non-canon Bond film based on the Thunderball theme. Sean Connery's wife had told him just prior to being asked to do the film 'Never say never' and the subsequent classic Never Say Never Again was born. 

Why am I telling you about Sean Connery and a James Bond-ish film called Never Say Never Again?

Because with so many changes to mortgage approvals and such a myriad of confusion created by all these criteria to get a mortgage and be approved, many prospective buyers (yes I'm looking at you first-timers!) are thinking; "I'll NEVER be able to afford to buy a home!" Well, I'm here to tell you "Never Say Never...AGAIN!"

Currently, buyers wanting a conventional mortgage at a big bank have to have 20% down payment. Who has that kind of money lying around if you're a first time home buyer?? In this time of higher prices on everything it's challenging to save up that kind of dough. 

Then there's the maximum ammortization of 25 years. I remember when I started in real estate 12 years ago there were 40 year mortgages! surprise Yes you pay more interest but to be able to ammortize for 40 years meant those payments were more manageable and you weren't working to pay your mortgage only.

We also got the stress test placed on us which in my humble opinion and experience helping buyers was a big blow. Suddenly, the dream house they previously had been able to afford and approved to was out of their reach and grasp, with most buyers having to reduce the purchase price of their home by up to 20%. That means an $800,000 home shopper had to now look at homes in the $650,000 range. Wow. If you've looked around at homes you know the categories of properties and what a difference that much money can make. 

The Government is mumbling about maybe a change to those regulations. Retracting the stress test or increasing the ammortization to include 30 year mortgages again. That would be great but we don't have any guarantees on that and the clock is ticking. I'm sure most home buyers would like to be out there looking sooner as opposed to sitting on the sidelines and waiting to see 'if' changes are made.

So what's a Never Say Never home buyer to do?

I have helped many first time home buyers and buyers in general in my time as a realtor. I love you guys! It's so enjoyable searching for 'the one' and seeing your excited faces when we secure it! Going through the financing condition is nail biting that's for certain. But I have mortgage professionals who have opened my eyes. Opened my eyes with their experience and options! Options for buyers who don't have 20% down! Really?? Yes REALLY! Options for pretty much every scenario and buyer type out there.

In the coming weeks I plan on doing some seminars which I invite all you Never Say Never skeptics to come out to and learn about what your options are.

Until then if you have any questions about real estate and getting a mortgage, give me a call or email. 

I am Licensed to Sell after all. wink

 

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