Buying A House Is The Largest Financial Investment

979 WordsDec 1, 20154 Pages
Buying a house is the largest financial investment most individuals will make during their lifetime, yet so many individuals jump in blindly without having the current information and all the facts. The decision to own versus rent is not only an economic decision, but also a lifestyle decision that requires copious research. As a first time home buyer, it is imperative to learn what caused the collapse of the housing market, how the market has changed, the specific changes mortgage companies have made in their lending standards, the types of loans that are available, and which loan is the best for your situation. Additionally, purchasing a home involves individuals understanding their current financial situation, credit history, monthly budget, and the qualification criteria necessary to get the best value in today’s housing market. Research and educating will empower individuals to make the right choice either to continue renting or becoming homeowner. The American dream is to own a home, but many individuals are skeptical of purchasing a home due to the collapse of the market. Research shows that the demand for home purchases peaked in the early 2000’s and lenders made non-traditional mortgage options, such as adjustable rate mortgages, interest only loans, and “liar loans” with low interest rates that later ballooned the payment to two or three times the starting size within two to five years. (16 Before you Buy) As a result, unqualified buyers qualified for larger
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