Many lenders are dropping out of the student loan market or tightening their standards every week it seems. Financial aid offices are worried. A law passed in May makes federal loans more accessible but private loans are harder to get. Many students and families are turning to the government for help. The Higher Education Opportunity Act which offers more transparency in the student loan process is awaiting the President’s signature.
In other news…
People that purchased pre-construction homes are losing their money and not gaining a new home. Around the country many new home projects are delayed or being scrapped all together and homeowners are unable to get their money out of these projects.
The pros to buying pre-construction is that you can buy at a lower rate, get first choice of unit and the ability to customize, will experience an appreciation in the time it takes to complete the project, and you can build credit during construction to get a better loan. The downside is that your deposit is tied up for years without interest and you may lose your deposit if the project falls through. Here are a few tips to help you avoid losing your money in buying preconstruction.
Be aware of how your financial situation will change between the contract and closing because you can’t apply for a loan until the project is finished.
Expect the project to be delayed.
To determine whether your preconstruction is a smart buy or not consider the competition being built in the future nearby.
Hire an attorney to make sure your contract is fair and your deposit is secure.
Research the developer and his projects in your city and in others.
There are pros and cons to many investment deals. The key is to be informed to minimize the risk and increase your return on investment
Tuesday, August 12, 2008
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