Buying a Home in the Post-Recession Market

by Vicki Roscoe Erickson, TopLine Federal Credit Union

Whether it’s the first time or fifth — buying a home is a big deal. In fact, for most people, it’s the single largest purchase they’ll ever make. But home buying has changed since the burst of the housing bubble. The majority of home purchases now are distressed sales, meaning they’re either short sales or bank-owned properties.

On its own, this would seem to be a boon to potential buyers, but such a sale is not without its complications. Unwilling sellers or financial institutions can often drag the sale process out — sometimes for up to a year or more.

Fortunately, there are advantages in this market too, if the buyer has done the homework, and is working with a good team of real estate and financial experts. With a steady income, a good credit history and as little as a three percent down payment, a home buyer can pick up some incredible bargains — at a fraction of the asking price of just a few years ago. Be advised: home prices are gradually going up, and excess inventory is decreasing. However, interest rates still are at historic lows, so this remains a great time to be in the market for a home.

How does one take advantage of the current housing market, without taking unnecessary risks? One of the most important factors is a solid and trustworthy financial partner in your corner. A good financial institution can advise you on getting the right mortgage for your budget, not just the biggest one you qualify for. Taking into account your entire financial picture will help determine the actual price-range of home you’re looking for.

A small, local lending institution, like a credit union, can be an invaluable resource for borrowers. Credit unions are mainstream lenders, and provide the same products — like mortgages and many other loans — that large banks offer. But because they are member-owned, and local, they look out for their members’ best interests, and take the time to get to know each case when looking at mortgages. It’s more than just reviewing a credit report and score, instead, a credit union will make sure members are well-informed and fully prepared before making a big decision like buying.

A credit union can also offer customized solutions based on individual needs, and in many cases your loan is locally held and serviced, which provides convenience as well as peace of mind.

If you’re in the market for, or even considering a new home purchase, knowledge is power.

So get informed:

TopLine Federal Credit Union will be hosting a free seminar — “Wise Home Buying,” to give potential homebuyers the tools they need to succeed. Attendees will hear from a local realtor, a TopLine mortgage advisor and an insurance agent. These experts will share insights and individual advice on home buying, including market specifics and inventory, as well as how and what to buy; available home loans that are best for individual needs, what you can expect during the loan process, and possible tax qualifications; and insights into policy coverage. You do not need to be a credit union member to attend.

WHEN AND WHERE:

Wed., Sept. 19, 6-7:30 p.m; TopLine Federal Credit Union — 9353 Jefferson Highway, Maple Grove.

HOW:

Space for the seminar is limited. To register, call 763-391-9494 or email rsvp@toplinecu.com.