The housing market is back on the rise. Now is the time for buyers, lenders, and job seekers to capitalize on the turn around.
Since the housing bubble burst in 2006 and the worst of the effects have slowly begun to disappear, many homebuyers can look forward to some great deals.
As home prices rise, they are still below the average of what they were over a decade ago. With so many foreclosures many homes sit stagnant, producing no revenue for lenders. Every year, a home's value may depreciate depending on the outdated interior and exterior style or a lack of care. Buyers can capitalize on these exceptional prices by taking out a larger mortgage to make simple improvements as needed for future resale when the market is back in full swing. Another idea would be to take advantage of the short sale. When a home is foreclosed, there is still a mortgage on it. Buyers can seek out these situations to purchase a home for less than the lien. The bank absorbs the difference as the buyer puts his or her investment into the property.
Be Wary of Pre-Approved Mortgages
Lenders and bankers are feeling more confident as the economy strengthens. Before now, applicants practically had to run a gauntlet to get approved, particularly since the housing market crash of the mid 2000s. Lenders learned their lesson, though, and more fixed-rate mortgages are being approved daily. Once you get that loan, consider purchasing property to rent or lease. Investors are quickly snapping up foreclosed properties and seeing a large profit in return.
Unemployment is declining. Consumers are spending. Even Ben Bernanke is sleeping better.
Lenders can start breathing easier as foreclosures are down. Between the growing economy and federal support programs, homeowners are finding ways to keep their homes. This allows for a stronger financial market for all, as banks no longer have to increase fees in other areas in order to make up losses. The Federal Reserve is raising the national interest rates, albeit at a snail's pace. Banks won't have to wallow under the pressure of the current interest rate. Although buyers can still expect competitive rates, lenders will finally see real returns on mortgage APRs.
Those who work behind the scenes are seeing their earnings increase. Employees entering the banking and financial sector can anticipate a rising in employment.
The real estate trends show there is recovery in the market. More buyers mean more earners. Financial advisors ranked as having the 6th best job in America in 2012 by CNNMoney. Needless to say, that median income of $90,000 might be the low end pay grade in 2013.
Assisting the Buyers
Rebounding after a considerable slump, mortgages are finally in demand. Mortgage originators help buyers apply for mortgage loans. With all of the loan options, multitudes of paperwork, and lines to sign, there is a need for assistance with the fine print. These 2013 real estate trends are a positive indicator the economy is finally reviving. Homeownership, investment, and careers opportunities are a welcome development.
This article was written by Dillon Pentz, a real estate agent, blogger and enthusiastic music junkie. For more information on the real estate industry and opportunities for employment, Dillon suggests visiting a site like www.moneyjobs.com
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