Do any of your lenders see the market right to pick a property?

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter." He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford. The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal. According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home". While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider. How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you. How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living. Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates. Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy. Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.Tax credit benefit. The federal government started providing up to a $8,000 tax credit to buyers.

Buy Now: Affordablility is higher than it's been in years. If your plan is to buy a home you'll live in for at least 5 years, there are several reasons why now is the right time: 1. $8,000 tax credit (if you haven't owned in the previous 3 years). The US Govt. is actually "paying" you to buy. Dont know when that will happen again in our lifetime, but to get it you must close by 11/30/09. 2. US Govt. subsidized (being held artificially low) interest rates. The plan is to subsidize the rates with 1.3 trillion dollars through the end of 2009. Once they stop doing this; rates will increase. 3. FHA financing benefits. While you can get this anytime, an FHA loan is assumable by another borrower down the road. Let's say you purchase now and get maybe, 5.5% interest. 5 years down the road you want to sell; the going rate is now 10% and you and your neighbor are trying to sell your homes. A potential buyer is qualified for a home loan at 10% and can buy his home, or yours by assuming your 5.5% interest rate. All things being equal, which will he pick? YOUR BIGGEST RISK IS NOT HOMES CONTINUING TO DECLINE IN VALUE, IT'S RISING INTEREST RATES. Buy Now!