There is no question that the housing industry is in a pretty sorry state right now. No one has the money to buy a home, and thus people who are selling their homes often find that they remain on the market for months, if not years, at a time. That also means that the prices for houses currently on the market tend to fall quite drastically – and you might be in a position to take advantage of that. However, you need to keep in mind that the rules are changing when it comes to qualifying for a loan.
The first thing you need to be concerned about is an appraisal. You need to make absolutely certain that any property you are thinking about buying gets proper appraised. That way, you will have a more accurate idea about what the home’s true market value is. You will also be able to pick out any discrepancies told by the person selling the house. Banks also appraise the homes they have. They like house to appraise at a value equal to or greater than the amount of the loan a buyer is requesting. That way, the risk of default lowers significantly.