Pine Belt residents hesitant to buy first home - WDAM-TV 7-News, Weather, Sports-Hattiesburg, MS

Pine Belt residents hesitant to buy first home

LAUREL, MS (WDAM) -

Just about everyone gets excited about having the American dream, a home of their own.

Since the housing bubble burst, many people are wondering if that dream can still become a reality.

Many likely remember in 2008 when the housing bubble burst, banks were foreclosing on homes while they were being bailed out by tax payers. The questions now are, some four years later, is the economy better, and is it time buy and sell again?

Some people have been discouraged by the national media and believe that loans are hard to come by.

Vice President of Magnolia State Bank Owen Munton says people shouldn't be discouraged but instead, should start looking for deals.

Munton says, "The interest rate mortgage has changed, and we have had low rates. You know in 2007 we were in the 5 percent range for the 30-year rates, those rates have gone down to the three percent range."

Munton says, "That is very significant for people. That affords them savings when they refinance. That affords them more house than they thought they might could afford to pay when they are out shopping and that affords them than their rent may be and they can go out and by nicer newer home for less than they rent for."

Munton says the process of getting a loan is fairly quick and easy.

"Whenever you apply for a loan there are several question that we will need to ask," he added. "We will need to document your income, document your bank accounts. We will need to check your credit. We will need to make sure that you can afford what you are going to do. If you can, it is a pretty smooth process after that."

He says the time is now since interest rates are low and the price on homes are down.

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