With more than 8.5 million existing and new homes sold, and mortgage rates still at 6.5 percent, 2006 was a pretty good year for residential real estate, after the massive appreciation of the past few years, home prices began to moderate and we are seeing a much more balanced market. So what's coming up for 2007? Interest rates should continue at the current, historically low level. With Existing sales leveling at a little under 6.5 million, and new construction falling, there will be good deals on existing homes and perhaps even better deals on new construction.
If you're planning to buy a home in 2007, here’s a list of New Year's resolutions you might consider making: Get credit and finances in order: Even if you have bad credit, lenders will be more forgiving if they see you've gotten your act together in the last six to 12 months. Federal law now requires each of the three main credit-reporting bureaus (Experian, Equifax and TransUnion) to give you a free copy of your credit history once a year. To get yours, go to http://www.annualcreditreport.com/. Add your credit score from Equifax for $6.95. Know how much can afford to spend for a home: Get Pre-approved from your lender, you can shop on line as well. There are lots of financing options these days, I got a great deal, and incredible service from my local credit union. Beware of predatory lenders, if the deals sounds too good to be true. Interview at least three brokers before hiring one: Choosing which agent to use or choosing not to use an agent can be critical to your successful purchase; someone you can trust, with whom you wouldn't mind spending a lot of time, and who is knowledgeable about the neighborhoods you've selected. Read and understand all documents before signing them: Take the time to read all documents thoroughly, considering all the ramifications of these documents, so many people just blindly sign things without really knowing what they are signing. Ask an attorney to explain things that don't seem to make sense. It's important that you understand what promises have been made and what warranties have been granted, and what implications these documents have for your personal financial and emotional well-being.
This week’s Real Estate Insight: Financial preparedness, a Realtor you can trust, getting organized and gaining knowledge about where you want to be living will help make your home purchase as smooth as possible. I wish everyone a happy, healthy, and prosperous New Year!
