I remember the last Real Estate bubble bursting when that Sub Prime lender fell - back in 2007.  It was at that time that the real estate market had enough with the prices being raised thousands of dollars each month.  Something new was afoot.

The introduction to the Paris911 team at REMAXWe saw what was new - one of the largest sub prime lenders fell to the way side.  Apparently overburdened with people defaulting on their mortgages.  If those people that had gotten financed, then had taken a bit more time and understood the equation between what you can qualify for and what you can afford, the lender probably would not have fell.

We see this prevalent today - not like it was back in the "hay day of real estate".  We see this trend with some of our clients that are happy they have been qualified at above they had expected.

The very next thing they say is that I'm qualified at (let's say) $450,000.00.  I ask did the lender give you payments at that level?  They respond, typically in the affirmative.

I then say, where do you want me to set the top part of the search at?  Most times they say $475,000.00 then follow it up with, "that will give us a chance to negotiate..."

I totally understand that - but one of the things that you will have to do is attend our Crash Course on Real Estate, or your agent's.  Everything should be covered about the current market.  They should also be covering what you can qualify for and what you can afford - mentioning the differences.

These clients may qualify for 450k - but, as I explained, "Stay as far away from that number as you can..." - Being Mortgage Poor is horrible and a place you want to stay away from.

I don't mind Ramen Noodle Soup, as I ate a lot of back in college - but if you can make a way where you don't have to eat it at every meal - that may be a bonus :)

Be Safe - Get the best advice and remember, when searching for real estate on-line, stick to the local search engines operated by local Santa Clarita real estate agents.  In this way, you won't have your personal information sold, traded or otherwise shared.  And if those agent's do, you have a Brick and Mortar office where you can meet them at to complain.  That is the 21st centuries example of "Behind the Tool Shed."...