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Credit Score?
Some think that lenders average everyone's credit scores together. If Jane has an 800 credit score and John has a 400 credit, score, their combined score would be 800 + 400 = 1200 divided by two, giving a not-so-terrible-after-all score of 600. Okay, close to terrible but nothing near 400. Of course, that's not so. In either case. Good credit doesn't erase bad credit. In fact, bad credit will kill the deal altogether. And scores aren't averaged, they're examined independently and the 400 score would render the 800 score impotent. If a spouse or joint borrower has bad credit, and the person with good credit can qualify on her own, then leave the person with bad credit off the mortgage and simply include him on the title.
Markets operate on the basis of supply and demand. If you have a local market where the supply of homes is significantly greater than demand, you will have a market where home sales slow, prices stall or drop, properties are more affordable and purchasers are typically able to negotiate significant concessions from sellers. And that, in a nutshell, is a buyers market.
Today many local markets favor purchasers. No less important, interest rates are at the lower end of the scale on an historic basis, and you can do well with conservative, reasonable financing such as FHA, VA and conventional loans.
Relative to the past few years, now is a good time to buy in many areas.
Insurance is usually the last thing people worry about when they are buying a new home. According to the Insurance Information Institute, that's a mistake, because it will be an expense a buyer will have as long as they own the property. Here are some key issues that the institute urges every buyer to consider:
How far is the home from the fire department? A location close to the station usually means lower insurance costs. What is the condition of the plumbing and electrical systems? Older and poorly maintained systems cost more to insure. Does the property meet current building codes? Up-to-date properties are safer and also cheaper to insure. What about wind damage? If insurance against windstorms is required, is private insurance available or will the buyer have to rely on a state-run program? If there a windstorm deductible? Is the home vulnerable to flooding? Floods aren't covered under a standard homeowner policy, although most major insurers will provide it through the National Flood Insurance program. How much the insurance costs depends on where the property is. Is there earthquake risk? Earthquake insurance requires an endorsement or a separate policy. 
Manufacturing activity expanded for the sixth straight month in January. The ISM index increased to 5.84% from 54.9% in December. The gain last month was led by production increases related to inventory investment. Severe declines in factory activity appear to be over and a moderate recovery from very low levels is underway. 
The MBA mortgage applications index surged 21.0% to 620.7% for the week ending January 29. The purchase index increased 10.3% on the week as the refinance index rose 26.3%. Refinancing activity accounted for slightly less than 70% of new mortgage application activity. Despite this week’s gains, the level of mortgage activity remains quite low indicating stagnation in the housing recovery. 
Jobless claims increased 8k to 480k for the week ending January 30. It may be that some of the holiday induced volatility has yet to work its way through the data, accounting for the elevated weekly reading. Expectations are for claims to decline from here and retake their pre-holiday improved level. If not then, it would indicate a stalled labor market recovery. 
