How To Get Home

I will agree that the subprime mess is getting a significant amount of press lately. It is almost like the pre-game show before a football game, except that it looks like we are somewhere in the 1st quarter. There are a ton of interviews being done with Fed officials, mortgage lenders, and homeowners. What went wrong? What does it mean? How do we prevent it from getting worse? Why should you care? The debate will rage for sometime about how lenders and regulators can fix the system, but until then, let’s see what impact it could have on you.

1. Home Values: It has yet to be determined how many current loans will be foreclosed, but the more inventory of unsold homes, the more pressure on property values. Supply is never a good thing when it comes online faster than the market can absorb it.

2. Buying a Home: You are a clear winner if you are shopping for a new home. With an increasing number of homes to pick from and very motivated sellers, buyers will benefit. The ability to mortgage that home will depend on your personal financial situation, but 30-year fixed rates remain very low.

3. Selling a Home: Price it to sell. There is no fancy way to say it. There are fewer buyers who can qualify with the tighter credit standards and there are more homes on the market to pick from.

4. Getting a Mortgage: Now more than ever, it is important to do business with someone you trust and be confident with their ability to fund the loan. As there is a significant contraction in the mortgage market, more and more lenders are being forced to close (44 since late 2006) because of the changing market. Get a referral from a friend or your real estate agent and look for a Mortgage Planner than has been in the business for a few years. Their experience can save you money.

I’ll try to keep you current as the market conditions change.