Open any national news paper, web site, or business magazine and you’re likely to find a story about how the real estate market is suffering and the mortgage industry is in crisis.  “Suffering”, “crisis”, and “meltdown” are pretty sensational terms, and they certainly catch people’s attention. That’s the point when you’re trying to sell publications.  Not all real estate markets are suffering, however, and just because the mortgage industry is correcting doesn’t mean that you aren’t still able to find a great loan at a great rate to help you buy a great home. 

Oklahoma City is now one of the hottest real estate markets in the country.

Remember the adage that the most important factor in real estate is “location, location, location.”  Fortunately, the Oklahoma City real estate market is currently one of the few great locations to be buying a new home.  Many respected national publications recognize that because of OKC’s low cost of home ownership, combined with its continued solid performance in property value appreciation, now is one of the best times to buy a new home in the metro.  Real estate investors are also cluing in on the investment value of our market.  Our local media is recognizing it.  Maybe you should, too.

The mortgage industry is correcting, not dead.

Don’t let sensational journalism scare you into thinking that you simply can’t get a loan anymore.  Given the strength that OKC’s market still enjoys, anyone with adequate income and satisfactory credit is still able to qualify for a loan with a great rate just as easily as ever. 

Constance Ladd one of JCH’s preferred lenders, is a loan officer for Coppermark Bank, and according to her, “Our region has less implications because we are in a very conservative market and our market values appear to be much more in line economically.”  The would-be buyers being affected by this correction in the lending industry are ones that required a “sub-prime loan” to qualify to make the purchase.  According to Constance, these loans were “allowing inexperienced borrowers to purchase bigger homes on “ARM” loans with prepayment penalties assigned to their loans.”  Many of those buyers probably shouldn’t be buying in the first place. 

Here are a few tips that may give you the encouragement you’ve been needing to take the first step in buying your next new home:

» Don’t assume your credit prevents you from being able to buy.  Just because you don’t have perfect credit doesn’t mean that you can’t qualify for a loan today.  Often minor credit defects can be corrected or adequately explained and excused by your lender.

» Now more, more than ever, is the time to use someone local.  In a volatile market, it’s important to have a go-to person to call and discuss your situation in regard to what’s happening in the market.  Having a direct link to your lender allows you to hold them accountable, which means better service.  Constance adds, “Home buyers should always go to their local lenders to collect information to start the prequalification process.  They should find out what type of safe loan programs are available that would fit the needs of their family, not the neighbor’s family,” or the family elsewhere in the country that nation-wide programs broadly target.

» If a deal sounds to good to be true, it likely is.  Don’t get caught up with on-line lenders who promise small payments and low rates.  There are often lots of hidden down-sides to such programs, if the programs exist at all anymore.  According to Constance, “The average home buyer should be cautious about the type of loan presented to them.  Also, that the monthly payment would fit the family budget prior to house shopping.”

Constance adds, “Never put off what you can afford today.  Interest rates are still in the all time lows and there are still great finance options to choose from.”  So if you’ve been on the fence about whether or not you’re able to make that leap into investing in your future through the purchase of a new home, get in touch with us.  Both Jeff Click Homes and Constance will be glad to help you make it possible.