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want2beamom
Love my boys soooo much!!!
Member since 8/06 10164 total posts
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True love doesn't end with happily ever after...
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Buying a home, and denying the bailout plan
I just saw on News 12 that the fact that the bailout plan didnt get approved, that it will have a huge effect on the LI housing market.
Does this mean that you should really not be buying now, or does it mean that it is going to effect people who already have houses (mortgages and foreclosures and stuff)?
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Posted 9/30/08 9:23 AM  |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: Buying a home, and denying the bailout plan
Posted by want2beamom
I just saw on News 12 that the fact that the bailout plan didnt get approved, that it will have a huge effect on the LI housing market.
Does this mean that you should really not be buying now, or does it mean that it is going to effect people who already have houses (mortgages and foreclosures and stuff)?
It will make it tremendously hard for people to get mortgages in addition to having higher rates on the mortgages.
The values of homes will continue to fall as property taxes will raise because of the decline in taxes collected due to unemployment, forclosures, etc.
If a bill of some sort doesn't pass to provide liquidity- it's going to get very ugly in this area.
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| Posted 9/30/08 9:28 AM |
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want2beamom
Love my boys soooo much!!!
Member since 8/06 10164 total posts
Name:
True love doesn't end with happily ever after...
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Re: Buying a home, and denying the bailout plan
This makes me nervous---we are supposed to be signing a contract sometime this week---I didn't know that it could mean higher rates---this stuff is really scary.
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| Posted 9/30/08 9:30 AM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Buying a home, and denying the bailout plan
Guess I should have waited just a little longer to buy a home. 
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| Posted 9/30/08 10:00 AM |
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Kris92
LIF Infant
Member since 5/08 298 total posts
Name:
Kris
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Re: Buying a home, and denying the bailout plan
I'm very nervous about this as well. DH and I are in contract. We already have our mortgage commitment, but don't know if the sellers have their commitment for the home they are purchasing. I don't know how this will affect our monthly payments.
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| Posted 9/30/08 10:12 AM |
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CathyB
Member since 5/05 19403 total posts
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Re: Buying a home, and denying the bailout plan
Posted by Kris92
I'm very nervous about this as well. DH and I are in contract. We already have our mortgage commitment, but don't know if the sellers have their commitment for the home they are purchasing. I don't know how this will affect our monthly payments.
Worst case you guys can live in our garage. 
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| Posted 9/30/08 10:15 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
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That Led To The Wrong Tendencies
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Re: Buying a home, and denying the bailout plan
I wouldn't worry. If you have good credit with a good down payment you will have NO PROBLEM getting a loan.
Remember banks need to make money and some of their biggest moneymakers is with mortgages.
They had a feature on the news last night about a car dealership that was selling so many cars with car loans. People had no problem getting approved. 20k loan. 30k loan. The credit is still there for the right people despite how the media tries to spin it.
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| Posted 9/30/08 11:45 AM |
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JTK
my 4 boys!
Member since 6/06 7396 total posts
Name:
Kristi
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Re: Buying a home, and denying the bailout plan
Posted by ave1024
I wouldn't worry. If you have good credit with a good down payment you will have NO PROBLEM getting a loan.
Remember banks need to make money and some of their biggest moneymakers is with mortgages.
They had a feature on the news last night about a car dealership that was selling so many cars with car loans. People had no problem getting approved. 20k loan. 30k loan. The credit is still there for the right people despite how the media tries to spin it.
this is what my dh keeps saying too
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| Posted 9/30/08 11:53 AM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Buying a home, and denying the bailout plan
the problem is credit will be closing up over the next few weeks and months.
if you are already commited or closing soon, it should be ok (though commitments are contigent upon rates and it IS possible without a lock for your rate to increase to a point where they'd have to lower the amount the bank is willing to lend you.)
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| Posted 9/30/08 12:20 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Buying a home, and denying the bailout plan
Posted by Ophelia
the problem is credit will be closing up over the next few weeks and months.
Maybe for unsecured credit. But for secured credit, the money to lend won't be going anywhere.
People will still get mortgages if they qualify.
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| Posted 9/30/08 12:24 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Buying a home, and denying the bailout plan
Posted by ave1024
Posted by Ophelia
the problem is credit will be closing up over the next few weeks and months.
Maybe for unsecured credit. But for secured credit, the money to lend won't be going anywhere.
People will still get mortgages if they qualify.
I like your confidence and I hope your right.
but that "qualified" qualifier makes all the difference. there will NOT be as many "qualified" buyers as there were in the past, and homes will sit longer still for it....IMHO
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| Posted 9/30/08 12:34 PM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: Buying a home, and denying the bailout plan
This is my opinion, not based on the economy.
If you are buying a house for the short term and hope to move on or up soon, I wouldn't do it now. But if you are looking at a house you hope to stay in for the long term and you can qualify for a mortgage, I think it's an excellent time to buy. With a caveat--I wouldn't go for a real fixer upper unless you have the $$$ to do it now since you may not be able to get loans to do the work. A lot of people will not qualify and many sellers will be worried, so there may be some good buys out there.
Why wait? A house is an investment, but it's also a home. If you hope to be there 10 plus years, I think the value would go back up.
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| Posted 9/30/08 12:44 PM |
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micknjohn
LIF Infant
Member since 7/08 333 total posts
Name:
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Re: Buying a home, and denying the bailout plan
Posted by cjik
This is my opinion, not based on the economy.
If you are buying a house for the short term and hope to move on or up soon, I wouldn't do it now. But if you are looking at a house you hope to stay in for the long term and you can qualify for a mortgage, I think it's an excellent time to buy. With a caveat--I wouldn't go for a real fixer upper unless you have the $$$ to do it now since you may not be able to get loans to do the work. A lot of people will not qualify and many sellers will be worried, so there may be some good buys out there.
Why wait? A house is an investment, but it's also a home. If you hope to be there 10 plus years, I think the value would go back up.
Very well put 
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| Posted 9/30/08 12:47 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: Buying a home, and denying the bailout plan
Posted by cjik
This is my opinion, not based on the economy.
If you are buying a house for the short term and hope to move on or up soon, I wouldn't do it now. But if you are looking at a house you hope to stay in for the long term and you can qualify for a mortgage, I think it's an excellent time to buy. With a caveat--I wouldn't go for a real fixer upper unless you have the $$$ to do it now since you may not be able to get loans to do the work. A lot of people will not qualify and many sellers will be worried, so there may be some good buys out there.
Why wait? A house is an investment, but it's also a home. If you hope to be there 10 plus years, I think the value would go back up.
oh I definitely agree.
we did!   
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| Posted 9/30/08 12:51 PM |
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monkeybride
My Everything
Member since 5/05 20541 total posts
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Re: Buying a home, and denying the bailout plan
Posted by ave1024
I wouldn't worry. If you have good credit with a good down payment you will have NO PROBLEM getting a loan.
Remember banks need to make money and some of their biggest moneymakers is with mortgages.
They had a feature on the news last night about a car dealership that was selling so many cars with car loans. People had no problem getting approved. 20k loan. 30k loan. The credit is still there for the right people despite how the media tries to spin it.
Yeah this is what I'm thinking. If you have good credit then you will still be able to get loans. I think all the borderline people are going to have problems.
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| Posted 9/30/08 1:31 PM |
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