Why Banks Are Saying "No!"

Inflation is happening, and it is crucial to be prepared for the effects it will have on the real estate market in the coming years. As a potential home buyer, investor, or mortgage applicant, understanding the impact of inflation is essential for making informed decisions about your real estate ventures.

Unconventionl Tools to Have in Your Back Pocket:

• Use a 401K account to fund your downpayment (only first home) without paying taxes on your withdrawl
• Ask for a personal loan from a family member 
• Get a part-time job you can maintain for at least 2 years
• Get rid of your expensive car payment and drive a used paid for vehicle 
• Consider a new-build to take advantage of their in house rates 
• Buy a home with a friend. It is like a marriage, so be sure you keep good records

Inflation refers to the sustained increase in the general price level of goods and services over time. Another way to think of it is the value of the national currency is going down too fast. This can be cause from a variety of things- typically printing too much money, too many government subsidies, uneven use of tax dollars, and foreign debts.

As inflation occurs, the purchasing power of money decreases. This means that the same amount of money will buy fewer goods and services in the future. In the real estate market, inflation can have significant implications, affecting both buyers and investors alike.

For home buyers, inflation can make homeownership a more challenging endeavor. As the cost of living increases, home prices tend to rise as well. This means that purchasing a home may become more expensive, potentially putting homeownership out of reach for some individuals or requiring them to settle for properties that may not meet their desired criteria. Moreover, inflation may also lead to higher mortgage interest rates, making it more costly to borrow money for a home purchase.

Do not give up. Buy a house, even if it isn't pefect. It can protect you from inflation over time. 

Investors, on the other hand, can take advantage of inflation by investing in real estate properties. As inflation occurs, the value of real estate tends to increase. This appreciation can present opportunities for investors to acquire properties at lower prices before inflation takes hold and then sell them later at a higher price, realizing a profit. However, it is important for investors to carefully analyze market conditions and consider the potential risks associated with inflation, such as rising costs for maintenance and property taxes.

Going forward, it is crucial for buyers, investors, and mortgage applicants to closely monitor inflation and its potential impact on the real estate market. Keeping a close eye on economic indicators and market trends can help individuals make informed decisions about their real estate ventures. Additionally, seeking advice from financial professionals and mortgage lenders who have expertise in dealing with inflationary periods can provide valuable insights and guidance.

Understanding the effects of inflation on the real estate market is crucial. As inflation occurs, it is essential to be prepared for potential increases in home prices and mortgage interest rates. By staying informed and seeking expert advice, individuals can navigate the changing real estate landscape with confidence.