This is a little concerning for me, but also a positive sign.
We’re looking to buy our first home within the next 6-9 months. Certainly having lower, more sane prices will help.
However, we’ve had credit issues in the past, and while we’ve resolved them our “good credit” score is not where I’d like it to be. My concern is that tighter lending practices will hinder us.
But at the end of the day, I’m not overly fretting. Just saving more for a larger down-payment.
A little advice for someone who has seen down tight markets before. Cash is king. If you can bring a far bit of cash, say over 10% down or better yet over 20% they are more likely to be forgiving on a few nicks on your credit.
Cash.
Save up, buy a house with cash.
Swallow your pride, look for something nice yet inexpensive, and buy it outright.
Stay the he11 out of debt.
The whole “mortgage meltdown” thing is the result of people buying more than they could afford, in an area that was overpriced because everyone bought into the “I’ll pay later” BS of loans.
A less than perfect credit score is a big excuse by lenders to ream you on higher interest rates, if you are so lucky to even find a lender. And they will nitpick the littlest item on a credit report.
No matter if you have always been on time on a mortgage or auto loan for the past 3 years. A 50.00 doctor bill not covered by insurance and misplaced by the billing company is all it takes.
Good luck.
All good till you find out you don’t have a job due to the recession lower prices could cause!
Seriously, good luck to you. Although as someone who works in the lending business...my income is directly affected by lowering prices...and while lower priced homes are easier to buy I also make less money when that happens...so it’s a negative for me.