How do the market conditions affect fist-time home buyers?

Answer 1

The market right now is great for buyers...and if you can wait just a little longer, it might be better. Housing prices are dropping. This is good for any buyer. Sellers are more willing to negotiate.

Lenders, however, have taken a hit because they gave loans to people with bad credit. So they are going to be more careful who they approve.

With the right lender, you should do OK. A realtor is who you should use. They know who to go to for financing & there are some very creative financing deals to be had if you know where to go & who is legit. This is especially important if you have never purchased before.

After you have experience, you may be able to do it yourself but I wouldn't recommend it on the 1st try.

Answer 2

Lenders are tightening up on their lending, not doing nearly as many loans that have little or no downs, and actually wanting people to prove income.

On the other hand, the housing slowdown means prices in some areas are coming down, and buyers have more power than before. Many areas have sellers wanting to get out but aren't getting offers. You can come in with low offers and some may take them.

Be sure to find a good independent mortgage broker who can find state, county or local first-time homebuyer programs to assist you. A state program really helped me 3 years ago.

Answer 3

Just like everybody else. The market condition really don't help or hinder the first time buyers. Any special loan are still available to them. The only advantage might be that more people would be willing to accept FHA and VA loans where in a sellers market those are harder to push becaust they cost the seller more money.