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Question for first time buyers?

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Are there any of you out there that have got a mortgage approved in the last 3 months or so?

Did you have to have a massive deposit? If you did, how did you get this (saving up, borrowing from family etc).

Are there other of you who haven't even applied because you think you won't get one?

Just wondering what's going on as this determines how/when the god-awful housing market will start to change.

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5 ANSWERS


  1. The housing market is not god awful.  It is almost normal.  IT is

    suffering from excessives.  When we get drunk we act one way.

    When we get sober another.  The RE market has been acting

    on a drunk high.  It is sobering.  

    SEEK out a bank with REO and ask if you need "reserves."


  2. My boyfriend and myself just bought our first house. We closed in mid July. Getting the mortgage was easy!!!

    We are in our 20s. His credit is in the mid 600s mine is the low 700s. We had a little over 10% saved up to put down.  We got an FHA loan and it was incredibly painless. We got a pretty good rate 6.5%

    So if you have everything in order buying right now really isnt that bad. We were careful about reading everything and definately did not gettting at ARM loan. We got a great deal on the house too. about 20,000 less than similar units were selling 2 years ago.


  3. Right now the economy is going into a recession with high inflation, unemployment and these are some of the reasons why there are not buyers for houses. For first time house buyer, you are ready to do so when you has a job with a salary equivalent to one third of your salary to pay for the monthly mortgage repayments. And able to provide at least ten percent deposit for the mortgage.So if you are ready, now is time to buy a house as a home. To have your own home to go to after a had day's work is a luxury in life.

  4. It is a good and very common question on a first time buyer, the deposit depends in how much are you buying for and what is the loan program you are applying for, if you are in a FHA program there is not much money you need for it and also you can apply for programs like Nehemiah and Ameridream that actually gives you for your down-payment and closing cost, for a conventional deposit in order to be approve without much question you will need a least 75% LTV meaning you will need 25% for your down-payment, must of the new development and motivate buyers are offering incentives so good that they can cover must of your expenses for closing, if you are buying for yourself you shouldn't be worry about when the market is going to change because must of the people live in their own home at least 5 years, i can assure your property will worth more than when you bought it in 5 or more years, if you are investing you have to buy low, hang it in there for 3 years or more and sell it low to get your profit, what happen in the last few years is that the properties were overprice because de demand and when the market when down so drastically, prices were as well, that price speculation won't happen again in another 15 years  

  5. I haven't had one approved, but I looked into how much I could borrow and had four different providers give me an agreement in principle and when I was like "okay thanks, I was just enquiring" they called me back multiple times to try to get me to go ahead.

    I have a reasonably large deposit (£20,000) but I live in London though so this would only equate to 10%, if that.  I got it through saving - I have no family so not only could no-one give/loan me money, I've been paying London rents for the last five years instead of living at home for free as many people might do.

    I decided not to go ahead because it is widely reported that prices will fall even further through much of next year.  I have decided to revisit the situation in December this year to see what's going on then (as this is when my current tenancy expires).  I'm not stupid - I'm aware that it's nice to pay as little as possible, but that you need to get in there whilst the media is reporting that prices are still falling, not after they've hit rock bottom and are on the way back up.

    Also, I think fears of a recession means that for people in some industries, they may be worried about job security and may think that as long as they don't have the burden of a mortgage right now so much the better, and it's probably best not to get into that.  This is especially the case for a single person such as myself - if I was unemployed and couldn't pay a mortgage I'd be f***ed.

    So ... there's your answer!  It's not that no-one can get a mortgage.  It's that no-one WANTS a mortgage right now whilst prices are anticipated to drop even further, or they're worried about job security.

    Kempark is American - the market there is completely different from over here so you must forgive him for sounding like he doesn't know what he's talking about.

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