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