| Regarding the housing market and bubble that we've | | | | * Loans aren't given to those with shattered credit |
| experienced, there is fault on all sides. Mortgages | | | | any longer. |
| were handed out to those who probably shouldn't | | | | * Vacations to Hawaii should only be taken if you can |
| have gotten them, home buyers were taking out | | | | afford it. |
| frivolous loans that they couldn't afford, and home | | | | * Being able to afford it doesn't mean maxing out |
| sellers were asking outrageous amounts for their | | | | your credit cards. |
| properties because they could. Loans were obtained | | | | * Everyone has to be more accountable and |
| with zero down which meant the home owner had | | | | responsible for their actions. Everyone. |
| nothing invested in the property. Easy come, easy | | | | So what is the future of real estate? |
| go. Nothing lost. Foreclosure city. | | | | We're not 100% positive. I don't think anyone is. |
| During this housing bubble, properties were appraised | | | | Right now, steps are being taken to tighten lending |
| high allowing room for renovation and consolidation. | | | | requirements, which can only be a good thing. The |
| Home owners were refinancing at ridiculous terms | | | | turn around and stabilization looks to be on its way. |
| and temporary rates in order to soup up their | | | | With the amount of foreclosures right now and |
| dreams, pay off debt or buy unnecessary toys. | | | | properties being priced astronomically well, it is a |
| When these homes started dropping in value due to | | | | great time to buy. If you're in a position to purchase |
| foreclosures and lack of loan programs available, | | | | a home and you have what you need in order, (at |
| home owners were stuck in their properties. If you | | | | least 3% down and decent credit) it's the time to |
| can't sell, you can't relocate. You can't get rid of the | | | | invest or purchase your own home. Rental property |
| property if you divorce or if there's a death in the | | | | is seeing an increase of demand and interest rates at |
| family. With negative equity, you can't refinance the | | | | the moment are incredible. Five percent or below is |
| home to a fixed rate and get yourself out of that | | | | something we haven't seen combined with the price |
| nasty adjustable rate mortgage which caused many | | | | of real estate currently. |
| to have very high mortgage payments. More and | | | | Many part time real estate agents and loan officers |
| more properties foreclose, and housing prices drop | | | | are calling it quits. This is a beautiful thing. This leaves |
| even lower. A vicious cycle. Greed was the main villain | | | | more room and space for experienced agents and |
| behind all of this. Greed on all sides. | | | | mortgage experts to get back to what they do best. |
| So what did we learn from this? | | | | Agents that succeed before, during and after this |
| * Not to live above your means or try to. | | | | housing bubble are agents who operate ethically and |
| * Pay attention to what you're buying and how much | | | | who pride themselves in being advocates for their |
| it will really cost you. | | | | clients and home buyers. So not only are we weeding |
| * If it sounds too good to be true, it probably is. | | | | out unqualified buyers but we're also in the process |
| * Saving for a rainy day is back! | | | | of weeding out unqualified or less seasoned |
| * Just because there's a product offered, doesn't | | | | professionals in the industry. Combining the two |
| mean it has to be obtained. | | | | screams improvement. |
| * Buying to impress others or constantly obtaining | | | | Like with any large purchase or life altering change, it |
| things you don't need is not cool anymore. | | | | has to be thought out, and you have to make sure |
| * Those who save and build a strong financial future | | | | it's right for you and your finances. If more take this |
| are now the cool ones. | | | | into consideration, the housing market should start to |
| * Mortgage requirements have changed now and this | | | | improve as many on the fence home buyers start to |
| is a good thing. | | | | take advantage of the incredible deals and many of |
| * In order to buy a home, you need a down | | | | these homes come off the market. |
| payment of at least three percent. | | | | |