There are fewer choices now if you are looking to buy or refinance a home. Because of the recent surge in defaults and foreclosures around the country many large mortgage companies have shut their doors for good. This has happened before but for now it will be more difficult to borrow money, especially with a downpayment of less than 20% of the appraised value.
The best advice: lay low for the next year and wait to see what action the government and other players in the national real estate arena take. This is a time to hold on to your cash and look for opportunities where you may not have looked in the past. More owners will be offering to carry back paper at favorable rates in order to sell property. Look for properties that you are willing to hold for at least the next one to two years. Things will improve, but not until well into 2008. The upcoming presidential election will bring changes of great proportion. Be a voyeur and be ready to jump at a good deal.
