| Although the champagne at the bottom of the | | | | certainly is. For those who have been waiting |
| bottle is still chilled from a warm | | | | for prices to fall, the time has come. |
| celebration of the New Year, we can | | | | Reliable and relatively risk-free fixed rate |
| confidently predict that 2008 will be another | | | | mortgages are still available at historically |
| lukewarm year in terms of real estate. Recent | | | | cheap interest rates. A wide range of houses, |
| data shows that home sales have declined to | | | | condos, rental properties, and urban lofts |
| record low territory, sinking year-to-year | | | | are available at wholesale prices. This makes |
| more than we have seen in over a decade and a | | | | 2008 the year that will be remembered for its |
| half. | | | | generosity toward those trying to buy a great |
| | | | home at a fabulous price. |
| Meanwhile mortgage troubles have spread like | | | | |
| a virus, impacting everything from jumbo | | | | • The Time to Strike is While the Iron |
| mortgages and home equity loans to consumer | | | | is Cold, not Hot |
| lending rules and credit card rates. For | | | | |
| those trying to sell a home, 2007 was a | | | | To strike up a deal when the market is cold, |
| constant uphill battle. One major problem was | | | | bearish, and dead as a doornail is to buy at |
| that there was enough excess inventory to | | | | the bottom with the potential to enjoy strong |
| supply the forward-reaching needs of the USA | | | | gains in equity over the coming years. While |
| housing market for an entire year. Another | | | | 2007 represented an unprecedented buyer's |
| was that borrowers were denied loans by | | | | market, the winter months following 2007 into |
| overly cautious mortgage companies and banks. | | | | 2008 only enhance the power of buyers to |
| Even when buyers were ready to purchase they | | | | negotiate a fantastic purchase. Historically |
| could not seem to come up with the necessary | | | | speaking, the winter months are the off |
| funds. | | | | season in the real estate business, as buyers |
| | | | hunker down to stay indoors and keep warm. |
| So if you made a 2008 resolution to shop for | | | | After the sun comes out in springtime and the |
| real estate, here are some points to consider | | | | flowers brighten up the yards of homes for |
| in order to help make your home buying | | | | sale, buyers once again find themselves |
| endeavor a successful one: | | | | competing with other eager shoppers who have |
| | | | been champing at the bit to get out and buy a |
| • Credit is Super Important | | | | new home. |
| | | | |
| If you have great credit, lenders want to | | | | Those who wait to shop until the doldrums of |
| lend you money because they are reluctant to | | | | winter, however, have a distinct advantage. |
| lend to almost everyone else. If you don't | | | | Sellers are eager to unload properties that |
| have great credit, take time to study your | | | | are more expensive to heat and maintain in |
| credit report, correct errors and omissions, | | | | winter, but buyers are nowhere to be found. |
| and bolster your rating before you approach a | | | | Show up on a seller's doorstep with prior |
| lender for a new mortgage. The stronger your | | | | loan approval and a purchase offer and you |
| credit, the better your chances of buying a | | | | are liable to snag the deal of a lifetime. |
| home at an exceptional price. | | | | |
| | | | For those who are in the market for a home in |
| • Documentation has Doubled | | | | 2008 is that the year will likely be both |
| | | | generous and stingy. Bargains galore are on |
| To verify your income now requires extra | | | | the market at fire sale prices, in virtually |
| paperwork, because lenders have tightened | | | | every neighborhood in the entire country. On |
| underwriting rules. To avoid delays when | | | | the other hand, money is scarce as hen's |
| applying for a loan, it is a good idea to | | | | teeth and lenders are still trying to figure |
| organize documents ahead of time. Ask your | | | | out ways to tighten the purse strings and |
| lender what is required, and begin filling a | | | | avoid defaults, foreclosures, and deeper |
| file with the appropriate papers so you can | | | | losses to themselves and their precious |
| do this tedious task at a leisurely pace. | | | | investors. |
| | | | |
| • 2008 Represents a Rare Buying | | | | The bottom line is this: Plan ahead for |
| Opportunity | | | | buying real estate in the coming months - |
| | | | especially in terms of your mortgage |
| Those house hunters who prepare themselves | | | | financing - and you can take advantage of a |
| before the shopping spree begins - by taking | | | | variety of economic factors that will work in |
| strategic steps to ensure a smooth mortgage | | | | your favor. |
| application process - will be in a position | | | | |
| to reap unprecedented rewards. As the saying | | | | Also set aside any bubbly left from New |
| goes, "cash is King during a recession". And | | | | Year's. You may want to use it to celebrate |
| although the USA may not be in an official | | | | the purchase of your dream home at a dreamy |
| economic recession yet, the housing market | | | | 2008 price. |