Show me the money!

Just as I am writing this, the House passed the Bailout Plan. No One has published details yet....but you can turn on any news channel this weekend, and I am sure, get the details. As this week was consumed with news of a bailout, no bailout, economic crisis if no bailout, our interest rates were holding steady, but higher than last week. Uncertainty kills the market. Both in bonds and in stocks. This next week will be interesting for sure as we see how the markets react to this (false?) sense of security. This decision to pass the bailout plan, whatever that means, is just a short term means to resolve the crisis. Long term effects are yet to come. Wells Fargo announced it will buy Wachovia for 15.1 Billion - or will they? Wachovia entered into an earlier agreement with Citgroup, or so they thought. That will be next weeks’ big newsline: Battle of the Banks. Another one bites the dust.

This week, I had a realtor friend forward me an article that a client sent her. The article focused on why it is better to rent than to buy. How does one respond to their client about this article written by an MBA graduate that has credibility and a title? (should I be scared?). NO WAY! You tell your client the truth. That if they google long enough, they will find many articles telling them what they want to hear. Well, this article did have some points to ponder, if you are a single person, no kids, no pets, travel 75% of the time, and have no life. That is about 1% of our population. In my honest opinion, this 'money' guru was trying to do one thing. Shake things up. Have a fresh point of view.

Homeownership is a choice. Personally, I did not buy my gorgeous (and best landscaping in the neighborhood) home in order to make a profit. This is where I raise my child, welcome my friends and family, and where I find peace and serenity after a long days work. So when a 'guru' writes an article about the fact that we should all become tennants and leave our 'investing' to the stock market, I say BLAH. I will play the 'Pride of Homeownership ' card any day. He can take his parque floors and brady bunch curtains and ....I don't know, take a hike into the real world.

Furthermore, while we are on the topic of buyer beware, another question I get often is: Should we wait to buy a house? Its hard to get a loan right now? My answer as an insider would be NO. Our business is running status quo. Sure, guidelines are tightening, and it is harder to obtain a loan (if you have no savings, and adverse credit). There are some borrowers that do get caught in the middle that would normally qualify. My answer to this is: If you feel that you fit in this category (you know who you are), call a lender 3-6 months before buying. This gives us enough time to plan, and advise of any credit changes/corrections you need before you fit into a program. Gone are the days you can call around for financing the day your earnest money becomes hard. In my experience, everyone, and I do mean everyone, has a special circumstance we need to accommodate for closing. We just need to plan ahead.

Also note, MONEY IS AVAILABLE! There are plenty of investors that are financing mortgage backed securities. Just look at the rates below! I can assure you that home loans will not disappear from the earth. Will rates go up a little? Maybe. Will they go down? It’s anybody’s guess. Act now. Times are good for buyers. SMART people are buying now and taking advantage of the buyers market mixed with low interest rates.