BRAVE NEW REAL ESTATE WORLD!!!

The housing market has emerged in a brave new world on the bust side of the boom. Distressed properties litter the market. Tighter underwriting rules apply. Regulations are stronger. Cash talks. Fast appreciation isn't guaranteed. But buying is still possible if you understand what's changed.

You need money on the table. Don't leverage yourself to the hilt. The larger the down payment, the better. A sizable down payment gives you an immediate equity stake in your home and a better shot at landing a loan for less.

Credit is tight. In the past, almost everyone was able to get a loan. Today you'll need a credit score in the high 700s, prove your income, assets and demonstrate you can make mortgage payments.

Home ownership isn't a right It's a responsibility. Today's housing market is littered with homes purchased by buyers who moved to fast and later discovered they could not afford interest rate resets or the mortgage once the economy tumbled and layoffs reduced or erased income.

Smaller is better. The era of energy- and money-gobbling McMansions is over. Smaller homes are less expensive to own, to operate, to maintain and easier to sell. Using less energy, they are also greener. Who needs all that space anyway?

Fast appreciation isn't guaranteed. Buying a home can be a good deal with prices down as much as 50%. Buy because you can afford a home. Don't buy because you expect appreciation to make you rich.
By: by Broderick Perkins of Realty Times - June 10 ,2010 Complete Article