There is a bright side to all of this economic doom and gloom going around. If you’re poised to buy a home—or even a car—in the next few months, you’re going to get quite a deal.
Save a bundle on a house
The rate on a 30-year fixed rate mortgage fell to 5.47% last week—a new four year low (sub. required), and lobbyists are pushing Congress to subsidize a 4.5% 30-year fixed rate for new homebuyers.
Despite low rates, great prices, and glut of homes for sale, buyers will still need to qualify for a mortgage, which could be the kicker. You’ll need excellent credit and perhaps as much as 20% down.
If you’ve got the credit (and cash) it’ll take to buy a home, then start shopping! To see if you’ll qualify for a mortgage—and what kind of rates you can get—learn how to get mortgage quotes online.
Buy a car, save a truckload
It’s not just the housing market that is ripe for buyers; car dealers are desperate to make deals. As you can see from the recent news, American automakers are hurting the most, but the entire industry is struggling. Read up on my tips for negotiating with car salesmen, take steps to secure financing if you need it, and then head to the dealerships!
(A final note on credit and auto lending. Yes, stricter lending has impacted auto loans. Even buyers with shaky credit should still be able to find approval, however; it just may not be at the dealership. If your credit is average or poor, try applying for an auto loan online as well as with your local bank or credit union before going to the dealership. But always, always get quotes from two or three lenders!