As I have covered in many public forums and blogs the trend of sub-prime mortgages have led to many home buyers being in arrears and facing or have faced foreclosure.

Sub-Prime loans are for home buyers with poor credit, bad employment records or little or no money down. While sub-prime loans have enabled many buyers that would otherwise be unable to purchase a home it has come at a great price to the industry.

While sub-prime loans have not been as prevalent in the Missouri real estate market as it has been in so called “Hot Markets” like Las Vegas or San Diego we have still felt the sting of these loans failing simply by all the associated negative press creating a lack of confidence in Missouri home buyers.

If a potential home buyer would investigate the cause of these record foreclosures nationwide they would quickly determine that these transactions should have never taken place to begin with. Conventional mortgage loans in Missouri seldom go into foreclosure and real estate consistently shows a steady appreciation rate.

So if you are a potential home buyer, sit down with your loan officer and determine home much home you can afford. Separate your “Needs” from your “Wants” and get pre-qualified for a mortgage on a home you can enjoy and afford.

~Rhonda McMillan

Broker