If you’re planning to buy a home or refinance your mortgage, you might be a bit apprehensive about the mortgage application process. After all, media reports on the credit crisis and on how banks have tightened their purse strings can make the process seem daunting.

While it’s true that mortgage applicants face challenges not present at the height of the real estate boom, there is some good news you may not be aware of: 30-year fixed rate mortgages are now in the 5 percent range, or below--some of the lowest rates in over 30 years. First time homebuyers may qualify for federal tax credits*, and some states (such as California) have instituted tax credits as well to stimulate local housing activity. So the news is very promising.

There are things you can do now to ease the application process and increase the odds of finding the right mortgage. Here are some tips:

Talk to the professionals. Your CENTURY 21 Agent can connect you with a mortgage specialist in your community.

* Consult a tax professional for details

Can you snag a bargain by buying a short sale? Short sales—when homes sell for less than the outstanding mortgage—are all the rage these days. And for good reason: They present savvy buyers with the opportunity to save thousands of dollars off the fair market value of a home.

Depending on your market, lots of short sales may be available. "When I look at the MLS, over half of the properties are short sales," said Jeffrey Kahn, an agent with CENTURY 21 Hansen Realty in Wilton Manors, Fla. "Buyers can really snag a bargain if they know what they’re doing and if they have patience."

Indeed, patience is the biggest asset any short sale buyer can have. That’s because the bank holding the mortgage has the final say on whether the deal will go through. After all, the bank needs to agree to take less money than it is due. And banks today are being bombarded with short sale applications.

Experts say it can take 30 to 60 days—or more--before you get an answer from the bank and know that the deal is a "go."

But a patient buyer can be rewarded. Kahn said he’s seen buyers pick up properties for 30 to 35 percent off fair market value.

Short sales can be good for sellers too. A short sale typically blemishes your credit report for less time than a foreclosure.

If you’re a buyer looking for a deal, or a seller trying to avoid foreclosure, call our office. A CENTURY 21 Professional Champion is here to assist you.

New Homes Need Inspections Too

You just signed a contract to purchase a brand new home from a reputable builder. But even though it comes with a homeowner’s warranty, has never been lived in, and will be inspected throughout the construction process by local government officials, experts suggest that you hire an independent home inspector to check it out.

Even new homes come with defects, according to the American Society of Home Inspectors (ASHI). And it takes a professional to spot them.

Many items can't be inspected once a house is completed. That’s why ASHI recommends that buyers consider having a series of phased inspections conducted at key points in the construction process: prior to the foundation pour, prior to insulation and drywall installation, and prior to the final walkthrough. These types of phased inspections may be added to the contract during negotiations.

Catching problems early will save homebuyers time—and money—later on.

But why have your own inspections? Aren’t buyers protected by the inspections done by local government officials?

While it’s true that local governments have oversight over the homebuilding process, building officials can and do miss things. In addition, a newly constructed home could have a problem that doesn’t rise to the level of a code violation yet could have serious consequences for a new homeowner. Remember, the building code contains a set of minimum standards to which a builder is required to adhere.

To find a certified home inspector, use the “Find an Inspector” tool on the ASHI Web site, at www.ASHI.org. Or simply ask your real estate professional for a recommendation. He or she can provide you with the names of several licensed inspectors in your area.

Can an Inspection Help Your Home Sell Faster?

Today, buyers have more houses than ever to consider. How can you make them pay attention to your listing?

A pre-listing home inspection might actually help your house sell more quicklyand for more money.

Imagine catching the eye of a potential buyer by advertising that your home has already been inspected and that there are no surprises. A home that has been well maintained may give buyers more confidence that there are no underlying issues and creates the impression that the seller is acting in good faith by conveying the home in good condition.

A pre-listing inspection will not only alert sellers to potential problems with the house, but sellers who nip problems in the bud and undertake repairs immediately will also be eliminating potential bargaining chips. That can put more money in a sellers pocket.

Most contracts contain inspection contingencies that allow buyers to back out if issues arise. By providing a pre-inspection report, however, a seller might even be able to eliminate these contingencies, thereby saving timeand reducing the chance that the buyer will back out.

Of course, if the pre-listing inspection uncovers defects, the seller then has to determine which repairs he will make. In addition, sellers are required to disclose any known defects or problems to a potential buyer. Its best to address these issues up front by providing the entire inspection report to the buyer.

How best to find a qualified home inspector? The American Society of Home Inspectors provides referrals to certified inspectors via the Find an Inspector tool found on its Web site, at www.ASHI.org. Or simply ask your real estate professional for a recommendation. He or she can provide you with the names of several licensed inspectors in your area.

How Low Will They Go?

The ads scream from the pages of local newspapers.
“Original Price: $1,002,488. Sale Price: $803,358. You Save: $199,130.”
“Deals of a Lifetime Weekend Event: Make Us an Offer!”
In certain parts of the country, new-home builders are slashing prices. And while that’s bad news for the builders’ respective bottom lines, these fire sales are great news for homebuyers and investors.

Just ask Karen Harris. Last year, she was able to snap up a four-bedroom house in South Florida—one of the most challenging markets in the nation—for nearly $130,000 less than the builder’s asking price. And that’s not including the upgrades the builder threw in for free.

Experts say the continuing credit crunch is making it difficult for even highly qualified buyers to obtain mortgage financing, resulting in reduced demand, swelling builder inventories and downward pressure on pricing. Banks looking to unload their own inventories of homes and condos—taken through foreclosure—will make the situation even worse.

How can potential homebuyers take advantage of the situation?

1. Do your research. Visit new-home communities, and familiarize yourself with the model types and prices. Don’t be afraid to inquire about the availability of builder specials.
2. Negotiate on everything—price, options, upgrades and closing dates. Builders are highly motivated and may offer special incentives—such as paying the first year’s taxes or homeowners dues--to sell a home.
3. Shop around. Home prices depend on demand; the longer a project has been open, the greater the likelihood the builder will negotiate on unsold homes.
4. Consider paying cash, if you can. The faster you can close, the more you’ll pique a builder’s interest.
5. Consult with a qualified real estate agent. He or she will be familiar with your local market and can offer invaluable insight to help you get the best deal.

Colors to Consider in 2009

What colors will be the hottest in 2009? According to Color Marketing Group, a trade association of color design professionals that predicts color trends each year, 2009’s top choices are being influenced by both our concern for the economy and our optimism about the future.

The group says that colors that are familiar or that make people happy will be popular choices for home design and accents this year. Consider these color trends, particularly if you are staging your home in preparation for sale:

1. 1.Passion for purple. Already a hot fashion color, purple will become a popular accent color for the home. Grayish-violet shades can work well as a neutral while more vibrant purples will be seen in a variety of products.
2. Blue is the new green. Green has always symbolized “green living,” but in 2009, blue—the color of water and sky—will deliver an environmental message as well.
3. Sunny side up—and down. Bright yellow will be a popular accent color in 2009.
4. Asian influence. Exotic shades that are popular in India, China and Turkey will cross the ocean. Look for shades of orange, turquoise, red and teal.
5. White is all business. White will show up everywhere, even in corporate boardrooms. Look for contrasts: matte vs. gloss, texture vs. smooth, etc.
6. Mauve makes a return. Yes, it’s back, but now a dusty violet shade will work as a neutral.