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Issue date: 10/8/08 Section: Business and Technology

Media Credit: SXC.HU

To pay $1,200 or $800? This was the difficult decision facing the Kraft family when deciding to continue renting their apartment, or purchase a new home, all on a student budget.
Steve Kraft, a recent Weber State University graduate, received his associate's degree in respiratory therapy.
"I am just glad that respiratory therapists are in high demand," Kraft said. "I feel lucky that I can come right out of school and make some decent money."
Kraft, who is employed at Praxair Healthcare in Ogden, rented a small apartment in Roy for about $800, along with his girlfriend and their two children.
"The decision was tough when my girlfriend and I decided to purchase a home," Kraft said. "Our apartment just wasn't big enough; we needed some space and stability and we felt buying gave us that option."
Kraft said he decided to purchase an existing home in the Riverdale area.
"Owning my own home is very exciting," Kraft said. "What is nice is I can write off the interest of my loan on my taxes at the end of the year."
Kraft said he anticipated that his family would see a nice tax check at the end of the year to make up the difference between renting and purchasing. Kraft said he figures purchasing a new home is still a great investment even though the markets seem a little uncertain. "I'm a young graduate," Kraft said. "Last thing I want to do is get in way over my head and not be able to pay for it."
Kraft is not the only student who is wrestling with the idea to purchase a home. Kirk Smith, Vice President of Bonneville Superior Title Company in Ogden said most students out of college looking to purchase a home need to have better credit.
"Lenders are really tightening up their lending practices," Smith said. "Students need to have a more stable income and better credit score."
Smith said that even though the economy has slowed, Weber County and most parts of Utah are still great places to purchase. Smith also said the less than $200,000 housing market has always been good.
"Cheaper housing will always be in demand, especially in the Ogden area," Smith said. "The university and its students have always played a key role."
Smith said closing on a house can be very stressful to all.
"About the only thing that has become easier when buying a house is the closing," Smith said.
Smith said that with Bonneville's SureClose, they have transitioned and gone paperless so customers can access the Web site, type in their username and password and access their closing documents.
"This has been a really nice addition," Smith said, "It makes closing on a house faster, with a lot less paper."
Jason Jacobsen, Senior Loan Officer at Academy Mortgage said the mortgage crisis is as bad as it looks.
Jacobsen, who has been doing loans for over 15 years, said the media hasn't exactly painted the right picture.
"Nobody wants to buy a house, especially when the media is telling people it's the wrong time," Jacobsen said. "Especially nervous first time home buyers."
Jacobsen said that even though mortgage companies have tightened up, lenders can still find them a good deal, especially through FICA score-driven government products.
"If you have good credit and a stable job we can always shop and find a good loan," Jacobsen said. "It is the person with the sub 700 credit score whose income is primarily tips that we will have a hard time with."
Jacobsen also said purchasing a new home is still the American dream and always a wise investment.

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