Terrible information about the collapse of the US housing market is all over the television news and in almost every newspaper. During this housing slump, many prospective first-time homebuyers often ask themselves: should you buy a home in 2008? While everyone’s situation is different, we hope the following paragraphs help you decide whether or not to buy a home in 2008.

It is a fact that property values ​​in North America have declined, in some areas they have declined dramatically and in others it is only a slight drop. Buying a home when prices are lowest is the best way for buyers to get the most for their money, and many people are now taking advantage of lower home prices.

The number one factor for most people when buying a home is securing an affordable mortgage to purchase the home. In today’s market, mortgage rates have also fallen to very low levels, making financing a new home more affordable than it was a year ago. When low mortgage rates are combined with reduced sales prices, your money can suddenly buy you a lot more home than you previously thought possible!

The only real hurdle to buying a home in 2008 will be qualifying for a mortgage. Despite low mortgage rates, lenders have tightened their lending guidelines since the housing bust began. Since many borrowers need 100% financing, this makes things much more difficult. To meet more stringent lending guidelines, borrowers will need excellent credit or have down payments in the range of five to twenty percent to secure home financing.

With property values ​​falling and mortgage rates at rock-bottom levels, 2008 is a great time to buy a new home. Not only is there more selection on the market, but you’ll also buy when prices are low, so when the next real estate boom starts, you’ll make a lot of money on your investment.