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How to Buy a House During a Weak Economy

Updated on July 29, 2011

You have tremendous buying power during a weak economy if you are looking only to buy a home.

A weak economy presents a good time to take advantage of lower home prices, foreclosed homes, and lowered mortgage rates.

This is a good time to stop renting and start owning. For nearly the cost of renting you can be building equity in a home and when the economy is stronger sell for more than you invested.

Do You Rent or Own Your House?

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Cheap Mortgage Rates!! Under 5 Percent!!

Banks will disclose mortgage rates to you. Ask around to find the best rate. They are competitive but a weak economy presents an excellent time to buy at a lower interest rate. A fixed rate can be one of the most secure ways to take out a mortgage.

More Negotiating Power

This is buying power. If you offer twenty percent less during a weak economy on the asking price you are not out of line. If this is not reasonable, ask for the seller to pay the closing costs of the home or finish repairs as needed

Variety of Foreclosed Homes Available

Check out your local newspaper in the classifieds or auctions. Check out websites that list foreclosed homes. Beware of homes sold AS IS. Many foreclosed homes are in rough condition and need repairs.

Take advantage of Government Bail Out Monies and First Time Home Buyers Programs.

What if you have a home already? Set up a contingency to sell your home before you buy a new one.

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    • Roseann Cole profile image

      Roseann Cole 6 years ago from Midwest USA

      You are right about that. Thanks Deborah-Diane!

    • Deborah-Diane profile image

      Deborah-Diane 6 years ago from Orange County, California

      This is definitely a buyer's market!