The Importance Of Microeconomics

Decent Essays
With every cloud comes a silver lining. I always heard the saying growing up and never seemed to understand its true meaning. While taking a microeconomics class we dug deep into this topic. That’s when I was able to wrap my head around its true definition.
I feel as if the economy crash a couple years was bound to happen. Our morals were out the window for a few dollars. Everyone from the buyers to the sellers were jeopardizing significant values to make sells complete. I feel as if we could only go up at that point; but after we got over the horrible hump. We would be able rise into a more wealthy economy by learning from mistakes such as quality standards, making bad loans, loss of sight in the underwriting process, and aggressive financing.
…show more content…
Making bad loans seemed right at the moment to benefit both parties in the home buying experience. The seller was making a commissioned sell and the buyer was getting a home that they didn’t deserve. Our falsely positive input created a terrible output. Faulty appraisals were being forfeited to create a sell for loan officers. This created problems such as approving people for homes with damages. Some damages, that the homeowner couldn’t afford to fix. High interest rates and bad loan contracts affected homeowners in such a way, that contracts that they were into or trying to get were just not …show more content…
The mistakes we all made are a part of history. We cannot erase them but we can surely learn from them. We now know, to create successful loans, we have to do major work in the research department. We must research applicant’s credit history, see the desire to make payments on time, and compare debt to credit ratio. The factors to get loans approved have to be different. A good input for a good output. Yes it will be hard but anything worth having is worth working hard for. The loan officer and applicant will have to put in the necessary labor to make beneficial loans. Getting individuals in homes at prices they can afford and only giving loans for reasonable amounts allows mortgage companies to create great opportunities for individuals trying to purchase homes. Education needs to be enforced of the tax benefit of ownership and the equity that comes with home loans. As long as the homeowner can see some benefits, they will be more willing to stay in good standing with the bank and loan

Related Documents

  • Decent Essays

    When the necessity arises to renovate a home, the owner can satisfy that desire by using the operating expense to accomplish that goal. Pride of ownership: One advantage of owning a home is the euphoria and pride the owner derives from it. The realization you cannot be evicted as a homeowner brings pride and dignity. Tax deduction for mortgage interest: This is an incentive to own a home. Homeowners may pay a reduced interest on the amount they paid on the loan that is on the mortgage.…

    • 1198 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Renting to own would be one of the more favorable choices because by doing so you’re allowing yourself time to gain back the financial footing needed to purchase a home, relieve the potential stress that comes with leaping into a steep commitment and allows the buyer to build credit to qualify for a home mortgage loan. Rent-to-own is the best option for those suffering home foreclosure because it allows people time to financially build back on their feet while living in a home potential for ownership. After falling in the misfortune of home foreclosure, it becomes extremely difficult for victims to seek external financing to help put them in another living quarter. With this particular option, potential buyers are able to enter an arrangement, typically 3 to 5 years, where they pay an agreed…

    • 810 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    A good agent will guide you to pick the right price. If you are a purchaser, he will help you pinpoint flaws in the house so that you can purchase it at a lower price. If you are a seller, the agent will monitor you on what to do so as to upsurge the house 's worth. Negotiation abilities One of the chief things that real estate agents are expert at is how to negotiate. Since they are not the purchasers or sellers, they are able to confiscate themselves from the emotional side of the transaction; therefore, they sell or purchase the house at the veracious price.…

    • 800 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Boomerang Buyers Essay

    • 817 Words
    • 4 Pages

    As long as they have maintain a good relationship with the landlord, in the future there is a possibility of owning the home. They should keep track of their payments so that they can establish a good credit score and later on be able to buy with a loan in the future. Over however many years the contract lasts till, the buyer and the seller can come into agreement in whether or not the house will be sold. All of these steps are not set into stone but it is the general concept behind the rent-to-own option in the housing market. Boomerang buyers should know that it is not handy dandy and always like this, but be aware of the process behind it.…

    • 817 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Maybe you were fired from your previous job, you are ill, or you separated and have been left alone to pay the mortgage. These may be bad reasons you are selling that home, but there are also positive reasons for you to sell that house. Often, homeowners are cashing in on home improvements and capital growth by selling their houses. This places them in a better position to reap from home selling opportunities provided by the housing market. You may want to take advantage of this if you recently remodeled your home because you can cash in substantial amount of…

    • 1172 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Marietta Ga Case Study

    • 761 Words
    • 4 Pages

    Having completed your real estate project, perhaps it considered better to put it in the market and wait for the returns be made. Your market success is under the influence of the quality of management that your property receives. Achieving financial success means that you have to be specific on whom to hire for the job. The observation is that many property owners do struggle to find their best property manager match. The reason is perhaps that there are many details to be looked into especially when dealing with property management in Marietta Ga. With the tips we are about to offer, many of the blows property owners go through are simplified therefore opening up the path to financial success in real estate.…

    • 761 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Student loans are easily a great source for building credit as long as payments are made on time. Establishing and maintaining a good credit isn’t hard, it’s just being responsible about your decisions that will affect your line of credit. Carelessness with your decisions will only cost you money needed for other important…

    • 701 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Rent-to-own would be the best option for boomerang buys, or anyone who desires to start a home, because it allows them to have a place that they can call their own. It also gives them the opportunity to learn to manage their money so that they can responsibly take out a mortgage in the future. Taking out a mortgage can be a scary thing for anyone who wants to start a home, and taking advantage of the rent-to-own options helps you to learn to be a smart home owner without taking out the “Big M”. There are some great benefits for choosing the rent to own option like having time to build your credit, or save up of a down payment on your dream house, or even just having the opportunity to let time pass while you patiently wait for a foreclosure on your credit report to settle down. Renting to own a home still allows you to start the family you always wanted and have your own place, and at the same time have you on the highway to home ownership.…

    • 811 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    There is an agency that regulates unethical behavior for home inspection services. Not all lenders require a home inspection, so sellers may skip the home inspection and agree to pay the extra cost for repairs at closing. As the seller if you can afford to sell the home for less or have a sufficient profit after all of the costs have been paid through escrow this option may work. In most cases, this is not the best solution for the seller or the buyer and realtors do suggest a home inspection to save money and list the home for full market…

    • 949 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    I 'm sure that this information will be very valuable for you. Happy property selling! It is important to price a home in the right way in order to make sure the price is worth with the value of the home. In my case, there are some things that I do before deciding the price of my home in order to make the best price for it and attract the buyers to buy it. I have to note that the price that I decide should not be above the market price so that the buyers will not be in doubt to make a bid for my home.…

    • 1849 Words
    • 7 Pages
    Decent Essays