Once again we find ourselves in a position that we need to take a realistic look at our Debt vs. Income. Homebuyer’s need to take the time to make an informed decision when considering the purchase of a home. Even though we are still at some of the lowest interest rates in the past 30 years, rates are slowly climbing. Many potential buyers are wanting to purchase a home in 2018 because of this, but they need to be cautious in the type of mortgage they take out. The 2018 Real Estate market is friendlier toward sellers because there is more demand than supply of homes. I ran across the below article in the MReport this morning and wanted to share. This lack of focus on the debt to income level is what got many in trouble in the last recession.
Homebuyers: Overleveraged and Under Pressure
Purchasing a home is unquestionably one of the biggest expenditures most consumers will make in a lifetime. It’s exciting, it’s nerve-wracking, it’s fraught with decisions. And when you finally find the “perfect” space to call your own, it’s also nearly impossible to resist—especially these days with inventory drum-tight, interest rates still hovering near the lowest recorded numbers in the past 30 years, and intense competition for the available properties. Sadly, for some buyers, that urge to acquire an abode is putting them in a precarious financial position, according to a new WalletHub study.
The company recently set about determining which U.S. cities have the most overleveraged mortgage debtors. WalletHub compared the median mortgage balances against the median income and median home value in more than 2,500 cities.
If you think this I the right time for you to purchase your American Dream, contact us and we will share the steps and tools that you will need to start this journey. We are always here to help you find the information you need, and then start search for your dream home!