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The Edgeworth Real Estate Firm, LLC
104 S. Wolcott Suite 550
Casper, Wyoming 82601
Direct Line: (307) 473-ROSE (7673)
Office: (307) 234-2000

rose@casper-homes.com    Rose's Other Websites

 

MY PLEDGE TO BUYERS:

Have you considered buying a home?  If you have, you probably have lots of questions. Hopefully, the information here will answer some of those questions.

WHAT DOES THE BANK WANT TO KNOW?

Bankers investigate three areas to see if you can get a loan.  First, do you have the ability to repay the loan?  They verify your income and outstanding debts, to decide how much you can afford per month for payments.  Second do you have the willingness to make the payments?  Here banks look at the credit report and see if past debts have been handled correctly.  Bankers are most concerned with the recent 12 months and back problems can be worked around.  Finally, is the property worth enough?  Call with questions and we will get the answers.

WCDA?

Many people buying their first home use Wyoming Community Development Authority (WCDA) funds.  The first years interest with these funds as of February 2004 are 5.5% to 6%whereas other rates are 4.875% to 5.25%.  $70,000 borrowed at WCDA rates gives you a principal and interest payment (P & I) of about $475 while at 6% the P & I is $510.00.  While this is not much of a savings in monthly payment, the real savings is the amount of money needed to close on your new home!

Down payment is a minimum of 3% which on a $85,000 home is only $2,550.  This can even be borrowed as a second mortgage from WCDA, so you may end up with only $700 to $900 up front costs at closing.  You can also finance some of your closing costs.  Down payments come from these second mortgages but funds can be a gift, from a 401K or savings plan (either your plan or your parent's) or refinancing a car or other "toy".

SHOULD YOU WAIT?

NO!  Definitely not!  Rates will eventually go up! We are just unsure if that will be in the fall of 2003 or the spring of 2004.

Will rates go much lower? Probably not as the Federal Reserve has pushed short term rates so low that investors have no incentive to lend and just might as well leave their money in their mattress.

Inventory, or the number of homes listed, has remained low the last few years. At specific times of the year, and in certain price ranges, inventory is almost non-existent.

Prices have moved up in the last year and show no signs of leveling off at this point. At these rates, buyers can afford more house for the same payment and do have the ability to bid up prices.

Put in another way, there is only a small possibility rates will decrease - even a little - but a big probability they will go up. The downside risk of buying now is low while the benefits of buying now are great! Also, inventory shows no signs of drastic increases and prices will not drop while rates are low and inventory is tight.

The moral of the story seems to be....BUY NOW!

HOW CAN YOU GET THE DETAILS?

We have developed an Information Session.  During this session we can show you what payments you can "afford".  This determines how much house you can buy.  We will check out your credit and tell you what can be done to fix problems.  If there are special circumstances we can get you to a dependable lender.  Then we give you a list of currently available homes that match your requirements.  Call today to setup a time that suits you.

CALL THE ROSE TEAM

473-ROSE (473-7673)

Rose Dennis  or Nancy Vencill