By Dan Gregor
Broker/Owner
Prudential American Realty Center


Todays first-time homebuyers are presented with the opportunity of a lifetime. Mortgage rates in early December stood near lows last seen during the Truman administration while home prices were well off their peaks of previous years. The combination made housing affordability, as measured by the National Association of REALTORS®, the highest since NAR® launched its Affordability Index in 1973.

Housing inventory is also abundant in many markets, enabling first-timers to secure good homes and pave the way to their financial futures. Indeed, homes and their long-term virtues of shelter, wealth-building and personal and civic pride are available at bargain-basement prices that won't, or can't, last.

Naturally, first-timers have many questions about home buying, starting with costs. With research and the services of a licensed real estate professional, these consumers can demystify the process and place themselves on the fast track to homeownership. Knowledge is power Nine out of every 10 home searches today begin on the Internet. With just a few mouse clicks, you can peruse neighborhoods, search countless online listings and take virtual tours packed with detailed photographs. The process gives you working knowledge of home availability and pricing in your local markets so by the time you sit down with your real estate sales professional you're well on your way.

Also visit informative websites such as www.ginniemae.gov, www.realtor.com and prudential.com, and by clicking the "Free Reports" link at the top of this page.

Affordability - Costs involved in the purchase of a home; mortgage, down payment and closing expenditures can be overwhelming to first-time homebuyers. By looking at your income and debt ratio, your real estate professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance. But, keep in mind that there are still low/no down payment options with VA and FHA financing.

Mortgage payment - In todays buyer's market, you may face competition for your dream home. To establish your spending limit and gain the ability to move quickly on a home, get pre-approved for a loan before you start looking. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. This process will also help you identify any credit challenges you must address prior to your purchase.

If you don't have a specific mortgage lender in mind, we highly recommend Derek Good with Equity Resources PH: 800-270-7082. With Derek you'll find the best rates, lower closing costs and excellent service. You can also apply online at www.callequity.com.

Down payment - The down payment amount varies depending on the value of the home you choose and your mortgage lender. First-time homebuyers may also qualify for down-payment assistance programs and grants available through their states and municipalities. Your mortgage lender can advise you of the availability and details of the programs you may quality for. Closing costs must be factored in as well. These include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees. All told, buyers should spend no more than 28% of their income on housing costs, according to Fannie Mae. Your real estate professional will be able to explain your options.

Making offers - Make sure you visit several different homes to get a feel for the marketplace. Visit the ones you like again to see things you might have missed. Work with your real estate professional to get all of your questions answered before making an offer. And remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction.

Indeed, home ownership remains a sound financial decision for most and a key component of long-term financial planning. First-time buyers who seek homes for all the right reasons; a place to raise a family, build for the future and face life's opportunities and challenges can secure their dreams and build for their futures at some of the most attractive values in years.

Feel free to search current listings without obligation on our site at Prudential.Com Or request information on a specific area or home here by requesting a MLS Market Snapshot .

So, What's The Market Like In Your Community?

An overview of the Columbus real estate market and the surrounding suburban communities is just a click away. I review community stats monthly and update this information for Realty Times and Realtor.com. If you are considering a sale or purchase you might find this information extremely helpful. We would also be happy to supply you detailed information on your specific neighborhood. Just let us know - 614-548-0531 -- You can view the community info online. Just Click Here. Then click on the "What's The Market Like In Your Area" link.

Short Sales Foreclosures Bank/Corporate Owned Properties HUD/FHA Repossessions

You've heard it on the news almost constantly... Real estate market values are declining... The foreclosure rate is the highest it has ever been... Homeowners that purchased homes with little or no down payment may now owe substantially more on their homes than they are worth. For homeowners in financial difficulty don't wait for the sheriff to come knocking on your door because of a foreclosure action. Several better options are available. Such as loan modifications, forbearance agreements, short sales and a deed in lieu of foreclosure are possible. All of these options are less damaging to your credit score than going through the full foreclosure process. And, with some mortgages when doing a short sale your lender may even provide you some cash from the sale to assist you with your move. For some online guidance we have a new site www.ShortSalesColumbus.com or feel free to give us a call.

Homebuyers wanting to buy in the near future may find some real opportunities here and may want to check into these specific situation properties. At the site mentioned above buyers can initiate searches for these properties in the specific areas of their interest.

Should I Wait Until Spring To Put My Home On The Market?

I'd say don't wait!! Early in the year there are buyers in the market looking. And, from the MLS stats, there typically is less inventory for those buyers to view since many sellers take there homes off the market prior to the holidays and may wait 'till spring to put them back on the market. From a homeseller's perspective that means less competition from other homes than you'd have a couple months later.

Financing Your Home

If you are like the majority of homebuyers, you will be applying for a mortgage loan. There are several sites that allow you to compare mortgage interest rates of lenders nationwide. You can also get personalized quotes. You may want to get pre-approved for your mortgage loan. We highly recommend Derek Good with Equity Resources PH: 800-270-7082. With Derek you'll find a really unique situation... the best rates, lower closing costs and excellent service. You can also apply online at www.callequity.com.

The Gregor Team at Prudential American Realty Center Proudly Serves The Following Central Ohio Communities:

• Ashville • Baltimore • Bexley • Blacklick • Brice • Canal Winchester • Carroll • Columbus • Dublin • Etna • Gahanna • Grove City • Groveport • Hebron • Hillard • Kirkersville • Lancaster • Lewis Center • Lithopolis • New Albany • Obetz • Pataskala • Pickerington • Powell • Reynoldsburg • Upper Arlington • Westerville • Whitehall • Worthington •