| House Refinance Center |
| Finding First Time Buyers |
| Where Will Realtors Look For Home Buyers In 2011 The housing market is still in crisis. Many experts expect relief in 2012. Realtors are not too sure and they are looking at several market segments to focus their farming. They need to find house buyers and quick. Thousands of first time home buyers would be great for the housing market. There was a time when college and university graduates were a sure bet. The realtor would keep in touch and about 1 or 2 years after graduation, a student would call looking to buy a house. Graduates were secure in their chosen profession, they had paid off their student loans, and were now exploring the American dream of home ownership. In recent years the game plan has changed drastically. Jobs are scarce. Student debt continues to mount. Students are still getting degrees but they are saddled with mounting student loans. According to the National Center for Education Statistics (NCES), the estimated number of Bachelor degrees awarded in 2005-2006 was 1,253,540. NCES also said that 66% of the graduates had debt and that the average graduate had about $23,000 in student loans. Depending on the major area of study, such as medicine and law, some student loans could be close to six figures. Graduates are facing hard choices. Should they stay in school and continue their education or perhaps take any job that comes along, even if it is outside their field of study. The jobs are simply not there, so why not remain in school, get a higher degree. This would mean adding more onto the student loans, but we have to see this as an investment. There is no guarantee that the student can get a job with a higher degree. On the upside, if a job is secured, the starting salary could be as high as $64,902 a year for a chemical engineer, to $33,280 for a sociologist. The salaries are from 2009. Program forgives some of the debt. So what advice can we give our future leaders? I would suggest scrapping the idea of staying in school and increasing the debt. Look for a program that would forgive some of the debt and at the same time pay a small salary. Look at some of the volunteer programs. The Peace Corps is a good place to start. The student loan must be a Perkins loan. After 4 full years of service, 70% of the loan is forgiven. Other benefits are 2 days of vacation for each month worked, a modest salary, and tons of pride, self-worth, friendships and fond memories. AmeriCorp is another great option. Serve for 12 months, in return you get $4,725 to be used towards your loan. In addition you get $7,400 in stipends. With Volunteers In Service To America (VISTA) you have to complete 1,700 hours and you receive $4,725 to be paid towards your loan. Another worthwhile program to consider is the Teachers Loan Forgiveness plan. Under the Federal Family Education Loan (FFEL) program you must have taught in a designated “low income” school for a minimum of 5 consecutive years. For certain teaching specialties the maximum loan forgiven is $17,500, and the amount is up to $5,000 for other teachers. If volunteering or teaching is not your cup of tea, you can always try the military. Students in the Army National Guard may be eligible for up to $10,000 under the Student Loan Repayment program. Other branches of the military have their own program. It would be advisable to contact the National Guard, the Navy and the Army to find out what the qualifications are. Until you have secured a permanent, full time job and your career has taken some traction, purchasing a house should be postponed. We have to consider a few issues when applying for a mortgage. Down payment helps get a lower interest rate. In the current housing market a down payment is crucial. Many first time homebuyers were helped with the down payment by their parents. Parents today are feeling the heat. Some are near retirement age. At this point in their lives holding onto as much money as possible is a good idea. Others are questioning the strength of their company, and their job security. For these reasons they are unable to help with a down payment. The second issue is the credit score. Limited credit history is a red flag to loan underwriters. A large student loan balance on a credit report will make many underwriters pause and take a good look at the application. Even with a down payment of 20% many loan officers like to see a credit score of 750 and higher. My words to college graduates today would be “don't give up hope, the recession is another phase in the economic cycle. When you land that job, be prepared to work hard, and welcome change”. For realtors, although the graduate market is a good place to spend your marketing energies, you would need about 3 years before you can reap the benefits. You should consider expanding your marketing to the technical colleges. Also look at 2 year colleges and trade schools. Graduates from these programs will be gainfully employed faster than their friends with a 4 year degree. prev: next: Home: |
 | |  | |  | |  | |  | |  | |  | |  | |  | |  |
FHA mortgage approval nonprofit brokers servicemembers stated income refinance calculator downpayment closing fees bank owned (REO)
calculators zero down mortgage second mortgage mortgage interest deduction mortgage servicing first time buyer financial reform fannie and freddie
Home Credit Foreclosure Refinance Hard money Interest only mortgage Loan modification Shortsale Reverse mortgage Strategic default
title insurance buying a home refinance with ARM appraisal inspection community banks good faith estimate FHA streamline 203k breaking news
| Questions You MUST Ask The Mortgage Lender Or Broker Not all mortgages go smoothly. There are always bumps along the road. You must find out how jump over or move around these obstacles before you sign your life away. The two big questions are one, how do I get out of this deal? And number two, how much will it cost me to cancel the deal. Why would I want to cancel the mortgage. There are a hundred reasons including, divorce, buying a different house, the current lender sucks when it comes to service, a better rate is offered across the street and "I don't have a job". Watch the slideshow. |
