Originally Posted by Calin
I'd wait to buy a home. Right now credit is tight so if you don't have pristine credit you are going to be paying alot for your house.
An interesting fact, I believe it was 2005-2007 home builders were building 2 million brand new homes every year. And the demand for homes (new or recycled) was only 1.4 million homes a year. So you have more than 600,000 homes that had no demand and that was only the new homes and not couting the recycled ones.
Basically what I'm saying is wait to buy. Right now cash is king. My personal rule of thumb is that I won't buy something unless I think I can buy it 3 times over.
And as for your numbers you were asking for. 275,000 before the appreciation of the housing bubble. I paid 30% of that and my rate is 4.85 on a 30 year fixed.
This is good advice, but there are advantages to buying in this market. Specifically if you're going to hold the property for a while. I wouldn't expect much (if any) property appreciation (without captial injection) for 4-6 years.
I'm Banker (Credit Officer) for a living, and i work for a regional bank here in the Philadelphia Market. While my job is strictly commercial, i do have co-workers who manage the Consumer side of things. They've mentioned credit is definately more difficult to get right now, but is not as bad as the media portrays it to be. People are still lending money, just not has hap-hazardly as they were before. If you're qualified you can get a mortgage. Plus, good credit isn't hard to have so long as you pay your bills.
If you're saving now, then you're in good shape. The more money you can bring to the table, the better off you will be.
I bought a new home 2-months ago and i got a really fair rate (less than 5.85%).