My Financial Healthcheck

As home values continue to drift lower the challenge is when and where to buy.  If we are somehow nearing a bottom then its a great time to buy with all the values that exist in the housing market, but if values keep declining…Manhattan where the home values had stayed steady for allot of the drop in other parts of the country has finally lost its immunity.  In the last three months values have fallen 16% but sales have picked up 28%, most in the smaller studio, and one bedroom condos areas.  The foreclosures that have happened in many states have not in Manhattan due to most properties were bought with conventional not subprime mortgages.  The area hit the hardest is the jumbo market since its very difficult to get a mortgage for these properties or the large 30% or more down is hard to come by with what has happened in the stock market the past year.  When you are ready to buy that home or condo its best to do some shopping for the right place to get your mortgage loan.  You can start by doing research on the internet, where you do your banking, your realtor or a referral from your friends or business associates.  Some do’s are getting a Good Faith Estimate which will show all fees associated with the loan, don’t give out your social security # on the internet, make sure you feel comfortable with the loan officer.  Make sure you know the difference between a locked in interest rate or one that is floating with he market, also know the number of days and expiration date when you lock in a rate.  As far as products go, the difference between a arm product and a fixed rate loan are not that far apart with their spread. If you plan on living in your home longer than ten years then the fixed rate loan is your best option, if your horizon is shorter than maybe the arm product might be the way to go. If you are planning on buying a home in the next year it might be a good idea to consider selling you home new and renting, thus securing your value if prices keep falling. Best advise is plan and do your homework.