Since, I previously posted on making refinancing your current mortgage a goal for the New Year, I now would like to address why those who are looking to purchase a home should do so in 2009.  First, let's be clear, the real estate market of today is a lot different than it was a few years ago, where almost anyone could get approved for a loan, regardless of credit, income, or assets.  However, assuming your credit is in good shape, you have a steady income which you can document, and you have sufficient savings there is still money to lend.  If you are not quite ready to buy, I will be writing next about coming up with a plan to help realize your dream of homeownership.

Why should you buy in 2009?

1) Mortgage interest rates are at an all time low and lower rates mean lower payments.

2) Home prices have dropped making homes more affordable.  In some areas there are real bargains.

3) Excess inventory make this a buyer's market, and sellers may be more willing to negotiate.

4) First time homebuyers may be eligible for a tax credit of up to $7500 on homes purchased before July 1, 2009.

5) The combination of these factors actually make buying a home now a wiser choice than at the peak of the market when there was a frenzy to outbid other potential buyers on already overpriced homes, no additional incentives to buy, and the lingering fear that the bubble would one day burst.

6) Waiting for the market to reach the bottom is a bad idea.  The only way to know when we've truly reached the bottom is when home prices start to go back up. 

For those who are thinking about  buying but may still be "on the fence", you may need to ask yourself "Is It Time to Develop a Sense of Urgency?", and consider taking advantage of these opportunities before it is too late.  For those who are ready to act,  the first step to purchasing your new home is to contact a mortgage professional to learn more about the loan process, find out how much you can afford, and to get pre-approved.  Getting pre-approved before you start looking for homes will show that you are a serious and qualified buyer and will give you an advantage when you decide to make an offer on a home. 

Visit www.aboveallmortgage.com to take the first step to becoming a homeowner in 2009.