Cristina McBreairty

There are many factors to take into consideration when answering this question. One of course is interest rates, which have already reached historic lows (at least in the last 20-25 years) and continue to drop even lower. This won't continue to happen forever!

The foreclosure inventory continues to grow, keeping the majority of the prices low. Prices on homes right now are the lowest they have been in years.

The programs that are available to first-time home buyers make it easier than ever to get a mortgage. Many of the programs offer low to no down payments, assistance with closing costs and options for the seller to contribute toward costs.

Combine these three factors with the new home owner tax credit that the government has bestowed on first time home buyers ($7500 in your pocket) and it creates a an ideal situation.

Put simply, there are a lot of good reason to buy right now!

Many people believe that this is the golden age for buying real estate because everything is in the buyer's favor. Interest rates are low, prices are down (and are bound to go back up) and the tax advantages and mortgage packages make it just too good of opportunity to pass up.

Some first-time home buyers may be on the fence right now thinking that prices may even go lower. They can't decide whether they should wait or if they should take advantage of the "ideal" situation now.

Well, the real estate slump is in it's third year. How much lower are they likely to go? The procrastinators may miss the perfect opportunity to buy. Once the rates and the prices start going back up, there are going to be a lot of disappointed buyers that "missed the boat".

Find a property you like and begin enjoying the benefits of owning a home. Don't be one of those people that look back on 2009 and kick themselves for not taking advantage of an ideal time to buy!

The Housing and Economic Recovery Act of 2008 is a $300 Billion rescue plan aimed at helping struggling homeowners avoid foreclosure. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are the top three changes that may benefit you:

1. Tax credits. First-time home buyers who purchase their primary residence between April 8, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest-free loan that is paid back over 15 years at $500 per year when taxes are filed.

2. Larger loans at lower rates. This is a great benefit for homeowners with "jumbo" mortgages, which range between $417,000 and $625,000. If you are considering purchasing a home in that price range, this provision may be ideal for you. Please call or email to schedule a meeting to discuss your options.

3. FHA Hope for Homeowners. This provision is designed to help homeowners who are "upside down" on their mortgage - that is, people who owe more on their house than they can sell it for in today's market. Essentially, this plan allows borrowers who meet specific requirements to refinance their mortgages to new 30-year fixed FHA mortgages. If you're upside down on your mortgage and struggling in today's economy, this is an option worth exploring.

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants & realtors will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won't benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios.

There are many different types of loan programs available, including "low" and "no" down payment mortgage programs. These types of programs require the borrower to provide less than 3 percent of the loan amount as down payment.

Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that "home" is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.

You May Have a Better Way Out!

The number of mortgage foreclosure filings continue to rise as hundreds of thousands of Americans struggle with monthly payments they can't keep up with. For many Americans, unexpected hardships have turned home ownership from a joy into a burden. The loss of a job, medical bills, or an unexpected hike in monthly payments can quickly make a mortgage unaffordable. But ignoring the bills will not make them go away, it will only make things worse.

If you need help, there are approaches that can help, but you may not be familiar with them. One of these is a "short sale."

In an approved short sale, the lender agrees to accept less than is owed for the property, and the homeowner is relieved of the debt. A lender may be willing to do this because it spares a lot of hassle and expense involved in executing a foreclosure.

Typically, a short sale does far less damage to the homeowner's credit than a foreclosure does. Having a foreclosure on your credit report is the worst strike, after bankruptcy, and can reduce your credit score by more than 250 points. Instead, short sales show up on a credit report as a "pre-foreclosure in redemption" status and can result in a credit score reduction of 100 points or less.

If you would like to explore the possibility of a short sale for your property, avoid foreclosure, and potentially save your credit rating, please contact me today. I work with professionals that assist you every step of the way.

Stop dwelling on the past and look towards the future!

Foreclosure is something that is happening to many people right now, so you are certainly not alone. There is no reason to keep yourself down or think that you did something wrong. You just need to make a fresh start and move on with your life.

Call me any time with questions - my advice is always free.

Avoiding common mistakes can make the home buying process simpler and less stressful. Keep the following in mind to help improve your home-buying experience:

1. Do Your Homework - Enter the market well-prepared by researching location, school district, deed restrictions and taxes.
2. Don't Try To Make a Shrewd Investment - Focus on finding the best place for you and your family to live rather than trying to predict the real estate market.
3. Location, Location, Location - Consider what part of town you would like to live in and avoid homes located on busy streets.
4. Don't Overlook an Inferior Floor Plan for an Attractive Exterior - Choose a great floor plan over a great exterior because you'll spend far more time inside the house than outside.
5. Don't Overlook How the Home Will Function For Your Family - Consider features that are most important to your family and choose a home that will meet those needs.
6. Always Have the Home Properly Inspected When Buying a Resale - Hire a state-licensed, professional inspector to evaluate the home's true condition, which could save you thousands of dollars in repairs and maintenance.
7. Always Have the Home Properly Inspected When Buying a New Home - Research the number of homes sold, homeowner satisfaction, years in business, industry recognition and warranties offered.
8. Avoid Not Getting What You Want Because You're Impatient - If it's a used home, allow time to negotiate and get the best deal possible. Refusing to rush the process could save you $5,000 on the purchase price.
9. Avoid Waiting For a Better Time to Buy Based on the Market and Interest Rates - History shows that those who purchased homes and kept them for three to five years or more did better than those who didn't. Waiting is one of the biggest mistakes a home buyer can make.
10. Not Buying At All - The biggest home buying mistake is not buying at all. Buying a home will give you a place to call your own and allow you to take advantage of tax breaks and build equity.