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Happy Monday,

It was a beautiful day here today - close to 70 and lots of dolphin going by!  More winter weather coming tomorrow.  Saw this article from Realty Times today with some great tips for those who are considering buying that second/vacation home this year. I hope all your ice and snow is melted soon and winter is nothing but a memory!

See the tips below from Realty Times:

Save, save, save for that down payment. Everyone knows that tighter restrictions are being called for in the real estate lending market, but what that means for each person is different. "The reality of what was taking place about a year ago is totally different from what it is today," he says. 

Understanding the bank requirements is vital. Buyers need to know that shopping for a home needs to fit their budget, rather than finding a wonderful place they'd like to live in and then attempting to leverage beyond their means. "Pretty much no income verification doesn't exist anymore. You can't expect to get a 95 percent or 100 percent mortgage on your property -- that's also gone.

Check your credit score. If you don't have a very good credit score, it's going to be difficult in terms of borrowing. Be prepared to give enough information to document your employment and taxes. Tax returns are seldom, these days, taken from the borrower; the banks will generally request the tax return themselves.

Set contingencies. Making sure that the appraisal comes in at the right price and making sure that you can get financing are two critical aspects of buying a home. Even with a loan approval, there are other factors that can lead to the denial/approval of a loan. Contingencies help to make sure that you don't get locked into a legally-binding contract to purchase a home that you can't get financing for or that doesn't meet the expected appraisal. There are numerous other contingencies that can be set; be sure to discuss them with your real estate agent.

Prepare for worst case scenario. Many people use mortgage brokers to arrange their loans but some buyers are going straight to the bank. If you do that, be sure to stick with the more solid banks because later on if they do get taken over by somebody or do have financial issues, your loan may become difficult to work on.

If you end up in a situation where you need to renegotiate your loan, having your loan with a less-known bank could equate to trouble. It's much easier to negotiate a loan if your lender still owns the loan. Once it goes into a pool of other loans it becomes close to impossible to negotiate.