Below is an excerpt from an article that Countrywide published a few months
ago, I thought it was some great information to share with you as we start
the new year, especially since interest rates are at a 3 year low:


"Countrywide Home Loans has helped millions of home buyers navigate the
home financing process and identify the best options for them based on
their individual qualifications and financial situation," said Dan Hanson,
managing director of Countrywide Home Loans. "There are still a number of
smart options available to most buyers out there - including those who do
not have perfect credit scores or enough saved to make a 20 percent down
payment."


According to Hanson, rather than get caught up in assumptions and misguided
reports, Countrywide encourages home buyers to know the facts before they
make one of the largest investments of their lifetime. The following are a
few things for potential home buyers to consider:


FACT: Now may be a great time to shop.

Most people buy a home when the time is right for them. And, now may be a
great time to shop given the available home inventory and buyer bargaining
power. Whether you're looking for a newly built home or a re-sell - deals
abound. Just as important as getting the best deal on your new home is
choosing the right home financing solution to close the transaction.
Recently, Countrywide launched its America's Open House campaign to help
ensure home seekers have access to information to make informed decisions.
The campaign has been a resounding success with Countrywide representatives
assisting home buyers at more than 25,000 open houses across the country.


FACT: Most buyers still have a number of mortgage options available to
them.


While access to money for funding home loans has been reduced over the last
few months, and some loan options have gone away, most home buyers are
still able to qualify for a wide array of choices. Those buyers can
leverage the current home buyer's market to get a good deal and then choose
a mortgage they can comfortably manage.


If you're a first time buyer looking to move up into a larger home or even
a buyer with a credit score that is not perfect, explore your options. The
fact is there are still financing options available. For starters, jumbo
loans (loans greater than $417,000) are still available. Additionally, low
down payment options remain available, meaning buyers don't necessarily
need 20 percent down Those with credit scores that are not perfect may well
find that FHA and VA loans can be good alternatives.


FACT: You can boost your bargaining power by employing time-tested tactics.


By taking a few simple steps up front, you can help boost your bargaining
power and increase the odds that your home buying experience is positive
and successful. Two top tactics are: Understand your credit and seek
pre-approval from a reputable lender. This will enable you to shop with
confidence and provide you critical knowledge of your true buying power.


A solid credit history is important when it comes to securing a home loan.
Manage your credit by paying down high interest credit card debt and making
payments on time. Most reputable lenders prefer that long-term debt does
not exceed 32 to 38 percent of a potential buyer's monthly gross income.
For the 12 months prior to applying for a loan, be sure that none of your
bills are past due, and remember to check your credit report and clear up
any errors that appear.


When you're ready to move forward with purchasing a home, partner with an
experienced and reputable mortgage professional to get pre-approved. A
pre-approval is a preliminary commitment from a lender to loan a buyer a
predetermined amount. Lenders base this pre-approval on things like how
much debt buyers have relative to their income, credit history, savings,
and down payment. Obtain a written pre-approval from a reputable mortgage
lender before you start house hunting so you know in advance how much home
you can afford and can gain clout for negotiating a sale price.
Pre-approvals also can speed up the loan process after a purchase contract
is signed and help avoid any last-minute deal breakers.


FACT: Owning a home offers advantages v. renting.


Aside from pride of homeownership, the fact is there are many financial
advantages to owning a home over renting. Homeowners with fixed-rate loans
have the same mortgage payment for the entire life of their loan and avoid
the periodic rent increases experienced by many renters. Homeowners may
also experience income tax advantages that are not available to renters.
The interest paid on a mortgage can be up to 100 percent tax deductible.
After assessing the impact of potential tax deductions, some people may
find that homeownership is ultimately less expensive than renting.
Prospective homeowners should consult with a tax specialist for more
details.


Also unlike renting, which offers no return on the monthly outlay, mortgage
payments for many types of home loans pay down a portion of the principal
balance of the loan each month. In doing so, the homeowner can build equity
in the home, which may eventually be borrowed against for other expenses
like home improvements or college education, if desired.


Have a GREAT week!

Rob

Robert Rauf
Countrywide Home Loans
Countrywide Bank, FSB
(732) 740-0175 Cell
Robert_Rauf@countrywide.com
www.RobertRaufHomeLoans.com

Building financial security, one home owner at a time

The highest compliment my clients can give me is the referral of their
friends, family and business partners. Do you know anyone with a home
lending need?