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