I heard you need over a score of 650 to be considered. 750 and up is where you will find the best rates. All lenders have their own criteria. I think this will put first time home buyers years and years after they graduate college to even come close to home ownership. Paying off student loans first could pose a problem, for those who want to buy a house.
There is nothing WRONG with having a loan AS long as you don't live beyond your means! When I bought my current home, which was a 5 years ago, I had a loan. But I would send in triple my payment and finally just paid it off. Live within your means and enjoy life.
If you guys have Cash you should clear up in this environment, as you are in a position to move fast and take a bargain.
I believe that is the way most lenders view it. The problem is that our means can sometimes change, yet the debt remains. I have been very reluctant to take on debt, and consequently I have a fairly high credit score. But I have been told that my score would be even higher (and my cost of borrowing lower), if I had more credit, perhaps a mortgage. That seems a paradoxical to me. I really like not being in debt, but I would buy a house if it didn't cost any more than renting and didn't tie up a big chunk of my capital.
Rwk, What part of the USA are you from? I think property needs to fall to wipe out the froth of speculation. That may mean falling to values where the cost of the mortgage = the cost or renting.
I'm in the Pacific Northwest. I lived in California for many years, but moved out because of the cost of housing. I would like to move back someday. There is no better climate. For the short term, I want low taxes and low cost of living. I like the idea of being able to pick up and move on short notice. Lately I have been tossing around the idea of living in Europe. I have heard I can stay for up to six months as a tourist without a visa. I could still trade, as trading gains are not considered earned income.
Europe is the best time zone for trading, but you could encounter language difficulties in certain countries. If you live in Pacific Northwest, doesnt it rain a lot? I heard Portland was a nice city, with real estate reasonably-priced there too.
Yeah, language... I have a German friend who just moved back there and who claims language is no problem. I sounds like a barrier to me. It rains a lot in the Pacific Northwest. It's been snowing for several days now, and according to my calendar, it's supposed to be Spring. Portland and Seattle are nice cities and cheap a few years ago. Now they are about the hottest real estate markets in the country and also the least affordable. It looked cheap at first, and it was -- compared with California!