***No-Fail Financing Strategies for Today's Market

When history books are written, the year 2007 will probably be called “The year of real estate upheaval.”nnFirst there was all the talk about the real estate bubble. Then came the subprime lending crisis, followed by a surge in the number of foreclosed properties hitting the market. Then just last week, there were widespread reports about falling prices and a surplus of newly constructed homes across the country.nnWhat does it all mean if you are trying to get your first mortgage and get started in real estate?nnThere’s some good news. Despite all the uncertainty in the markets, you can still strategize your way to a great first mortgage by following these very basic tactics:nnStrategy One: Build or rebuild your credit. Educate yourself with some good basic information about how credit reports work. If you don’t know your credit history, make an online visit to Experian or Equifax. If you don’t have a credit history established yet, start by getting a credit card, using it, and making your monthly payments in full. Then take the next step by getting a loan and paying it back reliably. In less than two years, you can establish a record of excellent credit-worthiness.nnStrategy Two: Work with the down payment you have. Shop around and compare programs online to find one that is right for your financial situation. Many current mortgage products are targeted at first-time buyers who don’t have tons of money to put down on a property. One warning? Don’t take a mortgage with a monthly payment you cannot reasonably expect to make. As a lot of unfortunate people discovered in the last six months, over-borrowing is a recipe for losing a home.nnStrategy Three: Give yourself a mortgage education online. You really can learn a lot in just an hour or two, using one of the many excellent mortgage calculators you can find online. Plug in the price of the property you are considering, play with different down-payment numbers and you can quickly get up to speed about how far your money can take you. And please don’t fail to investigate the many excellent courses at Trump University.nnSo those are the strategies. But let me include one other piece of advice too . . .nnDon’t forget smaller local banksnnTheir personalized attention and service can make them a great choice. As our Executive Editor Barry Lenson recalls, “The first mortgage I ever got was through a small regional bank, American Bank of New Jersey. After about a year, I made a mistake and dated a check for the wrong year. I got a call from a woman at the bank who said, 'You’ve never made a mistake before, Dear. I’ll hold your check until you can bring me another one today or tomorrow.’”nnThat bank was obviously trying to build its community. Try getting that kind of service from a bank that is half the country away!