[WASHINGTON D.C.]

By Debra Roth

Anyone seeing the news lately who wants to buy a condo may likely be delaying until reporters say the market has improved.

"Banks are tightening mortgage credit," is the theme of many headlines. "Developers are closing condominium projects," is another. Or: "Owners aren't coming down in condo prices."

While they are all partly true for the Washington, DC, area, there is another side of that story potential buyers need to know.

Here are tips lenders and real estate agents recently offered to prospective buyers:

o Don't assume you won't be able to get a mortgage. But don't assume a seller is going to wait while you do. Find out what you'll need and pre-qualify.

o If your credit score is good, your earning potential sound, and you've got a solid down payment, chances are you'll be able to get a mortgage with the best possible terms available today.

o Mortgage interest may be up, so buy before it may rise more. If a condo is a good investment-as most in the Washington, DC, area are because of the dependable economy through the federal government'you're likely to make money before long. Also, check with the IRS or your tax advisor-mortgage interest on primary homes is usually deductible.

o Don't focus on what you'll need for a down payment until you talk to a loan counselor. Terms may be available that will suit you even if what you've got to put down you think is low. If your credit is good, you may be able to take advantage of opportunities others cannot.

o Make sure your credit report is updated. A couple of late payments can prevent you from qualifying for the mortgage terms you need. If your report has errors or an explanation is warranted about why you were late, contact the credit agency.

o Don't give up just because you don't qualify. Be creative: Maybe the developer or owner will finance part of the mortgage. Maybe your parents will make you a loan.

o Do you have other sources of income you've overlooked, such as the potential sale of a car, that you can use for a down payment? Perhaps you own a boat with equity or can use another investment to borrow against to raise funds for your condo.

o Check with the IRS or your tax advisor to see if you are eligible for a penalty-free withdrawal from your IRA.

o Do you have other sources for financing at a rate you can afford? Some employers, for example, provide loans for housing. Some will even pay a stipend toward the purchase of real estate that brings you closer to your office.

o If a developer has sold most of the building, chances are he or she is covered to finish the rest. Work with your realtor to ascertain you know how sound the business plan is and that you are protected should the project be delayed or cancelled.

o Unlike many areas nationwide, condo owners in the DC area resist reducing prices, but may still have homes on the market. They know the DC economy is reliable because of federal government business. If an owner won't slash the price, consider that the price may be right and a worthwhile investment, even if you have to hold on to it longer than one might have last year.

o Remember that all the people who have come before you whose offers failed are frustrating buyers and motivating them to cut a deal. Another person's loss-if you are savvy, wise, and ready-can be your gain.


Washington DC Condos