Frustrated and disheartened buyers

It's all about perspective. Someone in California can't believe what $300,000 will get you in San Antonio but most people in here are looking for houses that are under $150,000. The problem is that everyone is looking for this price range and when you get down below $120,000, most of the inventory available are old houses that need a lot of work. It can be a very frustrating experience for someone who is trying to get a "deal" in this "buyer's market." Add the whole lending situation and you have a recipe for a lot frustrated, disheartened buyers.

I'm not sure when this is all going to turn around, but if you are looking for a home and your budget is below $150,000, here are some things you should consider:

- You have to be willing to make some compromises (Older homes need updates and repairs)
- Forget about $0 down payment, it does not exist any more.
- You have to prove your income, no more stated income loans.
- Be ready for underwriters to scrutinize everything, even if you have good credit.
- It's not your house until you sign the documents and you get the keys.
- Do not make any other major purchase until you buy your house.
- Do not open any credit accounts no matter how small.

This is a copy of a blog entry in my main blog www.iwillfindahomeforyou.com