Naples Housing Market Improving Thanks to Boomerang Buyers!

aboriginal-boomerang-0859LAre you a boomerang buyer?  There are several million “boomerang” buyers in the US ready to purchase homes in the next few years.  These buyers are people who lost their homes in short sales and foreclosures over the past few years and want to become homeowners again.  It may not be as long as you think.  If you work hard to rebuild your credit and don’t overspend on luxury items, you might qualify for another mortgage in three to seven years.  You may even find that your new mortgage payment will be much lower than the one on the house you lost.  Prices are lower now and interest rates are extremely low.  You will certainly find that your new mortgage payment will be less than you are currently paying for rent.

What Are The Current Housing Statistics?

  • 4.7 million homeowners have lost homes to foreclosure or short sale since 2007
  • 7 out of 10 will be homeowners again within eight years of foreclosure
  • 2013 is the year the first returnees will enter the market
  • Boomerang buyers are expected to exceed 500,000 a year between 2013 and 2016 according to John Burns Real Estate Consulting

How Can You Qualify?

Work out the day you can qualify to apply for a new mortgage.  FHA guidelines require you to wait 3 years from the date of the short sale or foreclosure.  Many banks are requiring a longer time period but you can talk to a mortgage broker who can check into the banks that are lending.  Take care to rebuild your credit during your wait.  Don’t buy luxury items and finance things on credit.  Pay off credit cards and cars so that your debt to income ratio is low and you can qualify for the mortgage payments.  Make sure that you save the 3.5% downpayment that you need for an FHA loan and also save extra money for the closing costs which are high in an FHA mortgage.  Qualifying for a mortgage is not easy these days but with the help of the right mortgage broker you can find a lending institution that will help you.

While you are waiting for your time to be up and you are working on your credit, start your property search here.  It is always good to have an education on the market values before you begin to search for your home.  You can set up a search that will send you emails each time a property is listed that suits your needs then you will be ready when you qualify for that mortgage again!

Contact me or call me at 239-601-3174 so that I can answer your questions and set you up with a mortgage broker to take care of you.  Together we can find your new home and get you out of that rental property!

Remember, it is always Toasty in Naples and you deserve your piece of Naples sunshine.

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