First Time Home Buyers with Good Credit

new home loans

This is not an easy mountain for you to climb.  You’ve been bombarded for much of your adult life with information that would have you believe that housing has died, is dead, and will never rise again.  Therefore home ownership should be avoided.

I understand and I can’t argue with where housing has been for the last few years.  It was an ugly ride to say the least.  But I want you to know what Paul Harvey would’ve called “the rest of the story”.  There’s a tug of war going on here.  This message will illuminate an honorable path to pull your share of the rope which will bring a much quicker end to this misery.  While fear and procrastination has kept so many “would be” home buyers on the curb, there’s a good reason to break free of that herd mentality and get up off that curb.  It’s time to implement!  In the process your fast action will earn you a chunk of that lucrative reward befitting a hero in responding to our plight.

Four years ago top economists advised us time and again that this dire economic cycle will not cure until the housing industry returns to a normal balance.  For four years we’ve been told what it will take to curb all of this misery, but rather than focusing on housing, our elected officials have been predisposed to their own agendas.  They’re missing the point and have been throwing gobs of money at “jobs” or “interest rates” or “the next shiny object”, and that just won’t cut it.

The problem is that we have lost trust in our Government.  We’ve stopped listening to the greedy bastards who knowingly allowed this mess to happen.  So that leaves us, the ordinary every day brown bag variety Citizens to solve what ails us.  Quick individual action will earn incredible personal financial rewards.  But no one told you that, did they?

Pundits and economists agree that the best problem to address is the one they identified four years ago.  Until normal volumes of home purchases, home improvements and new home building are restored we will simply languish in limp, weak, teetering economic turmoil that doesn’t promote jobs, balanced budgets, appreciating home values and financial growth for the masses.

But there’s also a SILVER LINING.

Throughout modern history it has been demonstrated that great wealth building occurs when economic, governmental and social arenas of a society are exposed to “change”.  In times of change, independent thinkers, often motivated by survival, managed to amass fortunes as those around them waited for others to make “something” happen.  There are more millionaires made during and immediately after recessions than at any other time in the economic cycle.

Stay with me here, therefirst home help buying your first home’s a silver lining in our dark economic clouds!   Unfortunately a large number of us are automatically excluded from taking advantage of this bonanza!  At the most opportune time in recorded history to buy a home in America, new lending laws exclude people who have had a home foreclosed or sold on a short sale from qualifying for a new home loan!

At a time when home sales are perhaps the most critical tool to pull our economy back to vitality; when statistics say buying a home has never been better in America; our politicians are looking elsewhere, for other things, to spend their way out of this recession.  Oh…and they’re going to leave the bill for you and me and our kids to pay!

I’ve identified an important 3 MARKET-FORCES Pattern, but it’s temporary.

Market Force 1:  INVENTORY OVER SUPPLY.

The reason this is the best time to buy a home in America goes beyond bargain basement home prices or the surging cost of renting, or even the lowest trough of fixed home loan interest rates in our history… we have a debilitating over supply of homes, coupled with ill-timed lending laws reducing the number of qualified buyers.  This is curable, and it will happen soon.  There’s pent-up demand that is already beginning to loosen our stressful austerity habits and many of the economic indicators are firming as people are beginning to spend money on more than just the bare necessities.

Something you have yet to hear is that the dramatic drop in home values was magnified by flawed new legislation.  MUCH OF THE VALUE LOSS IN HOUSING WAS A RESULT OF UNINTENDED CONSEQUENCES OF FLAWED DETAILING OF LEGISLATION THAT WAS PUSHED INTO ACTION BEFORE IT WAS READY.

Admittedly, there were guideline flaws in the old way homes were bought and sold.  Abuses became rampant, necessitating new rules.  Unfortunately the Congressional Committees made new rules that still need some tweaking before they’ll work properly.  One of the biggest problems affecting home values is how home appraisals are ordered, how the distribution of fees for those important reports are now divvied-up and the unrealistic pressures put on the appraisers to use inferior  (foreclosed and short-sale homes) comparable sales for superior properties. This unfairly under-cuts values of quality homes that will be brought down to the value of similarly sized inferior “needy” properties.  This will also be remedied in the near future.  Home values will be buoyed in short order when the needed tweaking is done.  That’s why there is additional urgency in buying NOW if you want to maximize your financial gains. (photo #73735948 man drawing house)

Market Force 2:  INFLATION on the HORIZON.

Something that Ben Bernanke, the Head of the Federal Reserve Bank, is not very vocal about is the coming INFLATION!  Inflation makes money worth less.  In fact, he’s saying that inflation is “contained”.   Well if you want my opinion of how it’s “contained” picture an extremely obese person in a tight girdle.  Sure, right now it appears everything is in order, but when it becomes “uncontained” it won’t be pretty.  “Contained” is a temporary condition for the approaching inflation.  BUT… inflation is a double edged sword, while it makes your money worth less, it also makes fixed, long-term assets, (like real estate) worth more!

Market Force 3:  LEVERAGE.  (Positional advantage)

When mixed with inflation, leverage affects wealth building like a good splash of gasoline affects a campfire.  Real estate is the best and easiest asset to leverage.  The mitigating premise is that you’ve got to live somewhere.  If you’re living at home with your parents for free, I understand.  Free is hard to beat. But for the rest of us, paying rent promotes your landlord’s wealth.  Making payments on your own home stokes YOUR OWN WEALTH.

THE THREE MARKET FORCES PATTERN of OVER SUPPLY, INFLATION and LEVERAGE form the basis for wealth building for the masses.  (Pied piper photo #85641556 – place next to and across the bottom of this sentence on the right margin)

HERE’S THE PLAN:

YOU ALREADY KNOW that housing availability and choice (OVER SUPPLY) has never been better than NOW.  And that governmental regulation has shrunk the number of buyers who can qualify for a home loan AND deflated home values.  You also know that the cost of financing a home (LEVERAGE) has never been more favorable than now.

If you recall even the slightest amount of detail from high school economics, connect the dots.  You’ll find that this best-in-a-lifetime opportunity to buy the top inflation wealth-building tool known …at a bargain basement price, while using the incredibly low interest rates in leveraging your money IS THE SMART PLAY as an undeniably powerful dose of INFLATION approaches.

Maybe numbers explain it best.  Let’s use fictional, easy round numbers; just say that inflation hits 5% per year.  Let’s say that you’ve been able to accumulate $10,000 in a savings account and or have something you can afford to part with (sell) that could bring that much money.

First the bad news:  5% inflation will make your $10,000 worth less, $500 less in one year.  Oh, it’ll still be $10,000 dollars, but it will only buy what $9,500 bought a year ago…and the inflationary effects will continue to erode value out of your savings like a reverse compounding effect so at the end of the second year the original $10,000 will only buy $9,025 of what it used to buy.

But buy a home with a loan…that’s LEVERAGE!  Say you use that $10,000 and put 20% down on a $50,000 home.  The 5% inflation increases the value of that home by $2,500 the first year, and another $2,625 the second year making the home value $55,125 at the end of the second year, and you only owe $40,000.  Your $10,000 value has increased by over 50% in two years.

first time home loansWant to juice it up?  What if you bought a $100,000 home instead, with just 10% down (the same $10,000)…higher leverage!  After the first year the 5% inflation increases the value of that home $5,000, and another $5,250 the second year.  Your $10,000 value has more than doubled in this two year example.  This is simply a crude example to show you the relationship between INFLATION and LEVERAGE.  When using a simple tool, housing, that uses INFLATION to grow the wealth that would otherwise shrink from the effects of inflation.

We have THE PERFECT STORM FOR WEALTH BUILDING.  Remember, inflation makes money worth-less.  But it elevates the value of HOMES.  The market forces pushed forward by the recession have briefly opened a market window of opportunity and many of us are disqualified to participate.  UNFAIR?   Sure, life’s unfair.

If you are renting, have a job and decent credit you may be qualified to participate.  If YOU are qualified, what are you waiting for?  GET STARTED RIGHT NOW!

If you intend, someday, to buy your first home or a “move-up” home, don’t wait, DO IT NOW.

For the past two years I’ve been preparing for this.  Although I have limited time and capacity to personally assist you, this Guide will illuminate a clear path and share insider secrets that will enable you to nail down the best possible interest rate and fees on your own home loan.  It’s like walking into an exam with the answer sheet.  In this case, it guides you through pricing strategies in order to win the price battle that you’re going to have with YOUR lender, on YOUR loan, on THEIR turf.  Don’t under estimate the power of having a tested strategy.  It can save you hundreds, even thousands when you close the loan and more each month when you make your home payments.

If you’re waiting for “the crowd” to do something first, I understand.   I was once Chicken Bob!  There is always a level of comfort in numbers.  The problem with waiting is that history also reveals that early adapters enjoy a bigger slice of reward than those who wait.  Hence the cliché’ “the early bird get’s the worm.”  Your fast action will accomplish two powerful goals:

  1. Help restore a normal balance in the housing supply.
  2. Bring our lingering recession to a speedier conclusion.

I wrote this FREE REPORT on the “3 MOST EXPENSIVE MISTAKES WHEN APPLYING FOR A HOME LOAN”  to help you find the confidence to step out of your comfort zone and turn this sour economic cycle into lemonade.  I hope you don’t let this opportunity to pass you by.

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