Lower Rates...Does that mean buy a Home?

Tuesday was a big day for the Fed Reserve, they dropped the Lending Rate 3/4 of a point and with an another expected Rate drop early next week, what does it all mean?

Well, it means if you are thinking about buying a home and your credit score isn't higher 680 there is no way to get 100% financing.

So, if you are going to be in the market for a new in the next few months there is still time to fix some credit issues and be able to buy a home before summer ends or before.

Few things to keep in mind:

1. Run your credit, know what your credit score is. Once you've run your credit you know your issues and what you need to do to fix. (That's where I come in, I have names of some companies that work with you to fix your credit, and I also have ways you can fix it yourself) You can be on your way to bringing up your credit score.

2. Tax season is coming and (let's keep our fingers crossed on that emergency surplus bill gets to us on time.) you are going to need to show your Lender that you have some money in the bank. You will need to have between 3-6 months Reserve, that's 3-6 months worth of Mortgage Payments.

3. Closing costs is some cases...Closing Costs are still being given out buy Banks/Lenders and Home Sellers, but you do want to have a little extra cash on you. Putting down 20% is ideal, but lets face it, not very many people have 20% to put down on a home, but doesn't mean you can't afford a home just because you don't have it on you.

With falling home prices, this really is the time to buy. Home ownership is never a bad investment, one thing to keep in mind is that if you buy a home you are going to have to plan on living in that home for 3-4 years to realize your equity gain. You will not see an equity gain in less than 1year as you did in 2003-2005.

There are still great deals out there and by the end of the 1st quarter and 2nd quarter foreclosures and defaults will have risen again, and Lenders/Home Sellers will start slashing prices and that is our expertise...Negotiating for you the get the deal of a lifetime...Home ownership!