Athens GA Properties, Athens Georgia Homes, and Athens Real Estate

As we get into the end of Q3 2009, the year after the financial collapse of 2007-2008, the housing market is a very different place in some respects than it was before the foreclosure crisis. True recovery has yet to begin nationwide, although in some local markets both the downside and recovery have been buffeted by strength beyond the subprime debacle.

Have buyers changed in the last two years?  Not so much.  Studies show that roughly 91 percent of home purchases are done with leverage or money from the banks.  For first time home buyers this figure is much higher (96 percent). What economists and financial gurus are promoting today sounds much more like advice from our grandparents or great-grandparents.  Here are some sage words of advice for those contemplating a home purchase for the first time.

• It would be a prudent thought to purchase a home by putting down 10 percent of the purchase price. For seasoned home buyers I would say you should shoot closer to 20 percent!
• When financing a mortgage, it is highly suggested to look only at a fixed-rate mortgage of 15 or 30-years.
• BEFORE you begin you home shopping experience, and this is the hard one to put into practice, get pre-approved at your favorite lender’s website (if you don’t have a lender note that I have a link (in green) to a trusted lender on this blog).  I say it is hard to put into practice because most people don’t do it.  You can get pre-approved without any hassle on my lender websites now-a-days in minutes!
• Don’t commit more than 39 percent of pre-tax income on the mortgage, property tax and insurance.
• If you are a two (2) income family, figure out whether you could live on one income. While most lenders won’t mind including both incomes, this may not be very practical if you decide to grow your family and have a couple of crumb crushers!
• Include a budget for extras. All homes require upkeep, repairs, and there are certain expenditures you will have to make after you close such blinds to keep the neighbors from getting to know you too quickly!
• Consider a property that can be expanded and improved. Properties with an unfinished basement, for example, have room to expand.  This expansion can increase future equity and provide additional space for a family’s growing needs without having to move!

For more information on the Athens Market please get your Market Snapshot!

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