If you were a buyer trying to enter the real estate market for the first time, and were shopping for homes last year, chances are you were: 

• Amazed at how little your dollar might get for you
• Outbid before your Broker could even present your case
• Surprised by how much entry in to homeownership was going to cost you both initially and every month
• Frustrated by how few homes there were for you to look at in your price range
• Having a hard time getting your Loan Officer and Broker on the phone because they were always busy

Here we are, the last Quarter of 2007, and MY how things have changed! Maybe you gave up on looking for a home last year, and are thinking about giving it a go again now. You are savvy enough to recognize that the "Mortgage Meltdown" and "Housing Collapse" you are hearing so much about in the Media reflects a fair amount of sensationalism. You have given it some thought, perused the Homes for Sale ads, checked the mortgage interest rates, run it by some family/friends as level-headed as you are, and have come to realize there are some opportunities out there for you now.

Now, you are a buyer looking to enter the real estate market for the first time, and chances are you are:

• Excited to find your buying dollar goes much further now because there are some distress sales (homeowners selling due to resetting adjustable rate mortgages they cannot afford, bank foreclosures, divorce/death circumstances, job relocation, etc.) on the market for you to consider
• Finding a greater selection of homes on the market for you to consider
• Pre-approved for your financing with a reliable, reputable mortgage company and discovered that interest rates are still at all time lows
• Finding that a home that would have been priced out of your reach last year may now be within reach again
• Doing some research, or attending a HUD Approved Homebuying Course geared toward first time home buyers, and have come away with some local sources of down payment assistance programs you may qualify for that will help you get a good loan program with affordable mortgage payments

But:  

1. What if it isn't the bottom of the market yet?
2. What if a better home comes on the market?
3. What if I wait and save more money for a down payment?
4. What if The Feds lower the rates again?
5. What if, What if, What if...

Hindsight determines when we've seen the bottom of the market cycle. Investing in real estate for most people is a long-term investment. Real Estate is a cyclical market driven by many different factors. NO ONE has a crystal ball that dictates when we've seen a bottom in spite of what you may hear from the weekend talking heads. Have you placed a value on how much owning your own home is worth? Considered the equity you will build over time, the tax benefits you will gain, the stability you will have with homeownership vs. renting, the benefits your children will experience from that security? What criteria do you have for the home that will suit your needs and meet your objectives?  Did you know that putting an extra $10,000 down lowers your monthly mortgage payment roughly $100 per month, but most people could shave $100 off their cable/ internet/ phone/ food budget with very little effort? Did you know when the Fed lowers the Fed Funds rate, the bond market has usually adjusted for that change well in advance of the Fed's announcement and it is already reflected in mortgage interest rates? Adjustments to the Fed Funds Rate do not translate to equivalent changes in mortgage interest rates, and are more recognizable in the points associated with the interest rate.

Buying a home is a decision not to be taken lightly. It is a complex process. When entering the real estate market for the first time, it is crucial that you educate yourself with all aspects of the process or get yourself experienced, reputable, reliable real estate and mortgage professionals to work with you. Not everyone is ready to become a homeowner, so consult with professionals before taking the plunge. Those that are ready to buy are finding amazing opportunities in the market we are in. Maybe YOU are the next one to experience the many joys and challenges of home ownership. Come join me at the closing table!

Karen Cooper - Oregon/California Mortgage Consultant www.Quality4Loans.com