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Keep in mind that this press release was written by a mortgage company.  I would say it is biased a bit, but contains some good information about buying a home.  Read on to discover the facts about home buying; Then share your thoughts in a comment!

The Press Release 

CALABASAS, Calif., Dec. 6 /PRNewswire-FirstCall/ — It’s not hard to have
questions about today’s real estate market — especially if you’re the one
considering purchasing your first home or making a move.  With all the recent
news reports about mortgage lending options, refinancing and interest rates,
there is plenty of information floating around.  To help provide some clarity,
Countrywide Home Loans offers some tips from its nearly 40 years of
experience.
    “Countrywide Home Loans has helped millions of homebuyers navigate the
home financing process and identify the best options for them based on their
individual qualifications and financial situation,” said Dan Hanson, managing
director of Countrywide Home Loans.  “There are still a number of smart
options available to most buyers out there — including those who do not have
perfect credit scores or enough saved to make a 20 percent down payment.”
    According to Hanson, rather than get caught up in assumptions and
misguided reports, Countrywide encourages home buyers to know the facts before
they make one of the largest investments of their lifetime.  The following are
a few things for potential home buyers to consider:

FACT:  Now may be a great time to shop.

    Most people buy a home when the time is right for them.  And, now may be a
great time to shop given the available home inventory and buyer bargaining
power. Whether you’re looking for a newly built home or a re-sell — deals
abound.  Just as important as getting the best deal on your new home is
choosing the right home financing solution to close the transaction.
Recently, Countrywide launched its America’s Open House campaign to help
ensure home seekers have access to information to make informed decisions.
The campaign has been a resounding success with Countrywide representatives
assisting home buyers at more than 25,000 open houses across the country.

FACT:  Most buyers still have a number of mortgage options available to
them.

    While access to money for funding home loans has been reduced over the
last few months, and some loan options have gone away, most home buyers are
still able to qualify for a wide array of choices.  Those buyers can leverage
the current home buyer’s market to get a good deal and then choose a mortgage
they can comfortably manage.
     If you’re a first time buyer looking to move up into a larger home or
even a buyer with a credit score that is not perfect, explore your options.
The fact is there are still financing options available.  For starters, jumbo
loans (loans greater than $417,000) are still available.  Additionally, low
down payment options remain available, meaning buyers don’t necessarily need
20 percent down.  Those with credit scores that are not perfect may well find
that FHA and VA loans can be good alternatives.

FACT:   You can boost your bargaining power by employing time-tested
tactics.

    By taking a few simple steps up front, you can help boost your bargaining
power and increase the odds that your home buying experience is positive and
successful.  Two top tactics are: understand your credit and seek pre-approval
from a reputable lender. This will enable you to shop with confidence and
provide you critical knowledge of your true buying power.
    A solid credit history is important when it comes to securing a home loan.
Manage your credit by paying down high interest credit card debt and making
payments on time. Most reputable lenders prefer that long-term debt does not
exceed 32 to 38 percent of a potential buyer’s monthly gross income. For the
12 months prior to applying for a loan, be sure that none of your bills are
past due, and remember to check your credit report and clear up any errors
that appear.
    When you’re ready to move forward with purchasing a home, partner with an
experienced and reputable mortgage professional to get pre-approved.  A
pre-approval is a preliminary commitment from a lender to loan a buyer a
predetermined amount.  Lenders base this pre-approval on things like how much
debt buyers have relative to their income, credit history, savings, and down
payment. Obtain a written pre-approval from a reputable mortgage lender before
you start house hunting so you know in advance how much home you can afford
and can gain clout for negotiating a sale price. Pre-approvals also can speed
up the loan process after a purchase contract is signed and help avoid any
last-minute deal breakers.

FACT: Owning a home offers advantages v. renting.

    Aside from pride of homeownership, the fact is there are many financial
advantages to owning a home over renting.   Homeowners with fixed-rate loans
have the same mortgage payment for the entire life of their loan and avoid the
periodic rent increases experienced by many renters.  Homeowners may also
experience income tax advantages that are not available to renters.  The
interest paid on a mortgage can be up to 100 percent tax deductible. After
assessing the impact of potential tax deductions, some people may find that
homeownership is ultimately less expensive than renting.  Prospective
homeowners should consult with a tax specialist for more details.
    Also unlike renting, which offers no return on the monthly outlay,
mortgage payments for many types of home loans pay down a portion of the
principal balance of the loan each month. In doing so, the homeowner can build
equity in the home, which may eventually be borrowed against for other
expenses like home improvements or college educations, if desired.

————————
    For additional information, a local Countrywide Home Loans office can be
reached by calling 800-747-1871.  Home financing experts are available to help
answer questions about the home-buying process.
    About Countrywide Home Loans, Inc.
    Countrywide Home Loans, Inc., a member of the Countrywide(R) family –
America’s #1 home loan lender — (as ranked for 2006 by Inside Mortgage
Finance, Feb. 2, 2007, Copyright 2007), originates, purchases, securitizes,
sells and services home loans and is the primary subsidiary of Countrywide
Financial Corporation (NYSE: CFC). Countrywide Financial Corporation, through
its subsidiaries, provides mortgage banking and diversified financial services
in domestic and international markets. Founded in 1969 and a member of the S&P
500 and Fortune 500, Countrywide Financial Corporation is headquartered in
Calabasas, California and its family of companies has a workforce of more than
50,000 in over 900 offices across the country.
SOURCE  Countrywide Home Loans, Inc.

Countrywide Home Loans, Inc., 1-800-796-8448, pressroom@countrywide.com

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