Have you ever heard that saying that goes, “If you choose to forget your past, you’re condemned to repeat it?” Well, that’s what today’s blog is all about. We Buy Fast Houston Houses has decided to remind you not too long ago, the following happened:
- One in every 54 households received a foreclosure notice.
- In a single year, property owners in Houston, Texas, and other parts of the country, lost 3.3 trillion dollars in home equity.
- Approximately 8 million Americans fell behind on their monthly mortgage payments.
We Buy Fast Houston Houses thought this is the right time to remind you of that housing market crash because we’re currently experiencing one of the largest housing boom in history. We need to be proud of how far we’ve come.
But don’t let these good times get to your head. Do not throw caution to the wind and start splashing cash on unnecessary home décor or improvements. Below are some of the valuable lessons that the housing market crash taught us:
a. Don’t take on more than you can afford
Leading up to that event, only 14 percent of mortgage applicants couldn’t qualify for a loan. As of 2019, that number has tripled. No borrower is ready to risk lending money to a borrower with an imperfect credit score. I addition, there have been financial reforms that have made it difficult for people to take on more debts.
b. Have an emergency fund
You can never know when you’ll need to work on a repair or maintain my house in Houston, Texas. Owning any kind of property is costly. You cannot really account for every housing cost but you can factor in unexpected maintenance when drafting a budget.
c. Try to avoid adjustable-rate mortgages
Before we all had to lose our houses to foreclosure during that period, these mortgages were advertised as the nontraditional option, and many buyers were lured by their “teaser rates.” The rates were to increase after a predetermined period of time, depending on the borrower’s agreement.
We Buy Fast Houston Houses would advise you against financing the purchase with such loans because they leave you exposed to dramatic interest rate increase. Stick with the predictable mortgages, if you lack a savings cushion to protect yourself from fluctuations of the economy.
d. Do not make assumptions
A price run-up is not necessarily a bubble. In fact, healthy market forces like low unemployment and a strong economy will not make Houston’s real estate rise in value artificially. Therefore, you need to be smart. Keep an ear to the ground and do your due diligence. Don’t let any information pass you by.
e. Interact with real estate investors from time to time
You want to work with someone who fully understands how to navigate the real estate market because that’s what they do for a living. We Buy Fast Houston Houses is a property investment company that’s always ready to work with the community.
Send us a message or visit or offices to learn more about real estate.