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With winter and the Holiday Season being upon us, I am recommending my clients purchase a home now rather than wait till Spring. Yes, the weather is better in the spring but the inventory of homes is high right now and interest rates are the lowest seen in a long time. This combination makes NOW the time to buy. Who knows what will happen when Spring rolls around?

Here are some other reasons I am suggesting not to dawdle in purchasing a home.

1) Interest Rates are Low- Its so good, I said it twice! Interest rates on mortgages are below 6% now and can often be found just hovering over 5%. Just 2 months ago, interest rates were flirting with 7%! 

2) First Time Home Buyers Federal Tax Credit: A $7500.00* tax credit awaits those "first timers" that buy before June30, 2009. Visit my homepage for more information on this tax credit.* subject to income limitations

3) FHA requirements are going up 1/9/09- Currently, it takes a 3% down payment to get an FHA loan. This 3% included any out of pocket closing costs and home inspections. This is going to change. Effective 1/9/09, a 3.5% downpayment will be required, not including other out of pocket expenses as before.

4) Winter is a great time to buy! Sellers may be thinking they will have to wait for the Spring to sell. Your offer coming in now may be "snapped up" knowing the seller may be able to "cut their losses", particularly if the home is vacant. Eliminating the dragging on of the home selling process may be just enough to have your offer entertained and accepted. Once spring hits, there is more competition of buyers for those desirable homes. That could drive prices up.