In 2013, US economy is back on track and so is the case with real estate market. In fact, Dean Graziosi suggests that 2013 is going to be busiest year for real estate. Many first time homebuyers are excited after hearing this good news. They are now more inclined towards their lifelong dream, a HOME of their own. What they do not know is the underlying hard competition.

As stated above, more and more buyers are fastening their belts to join the battle of winning their dream house. If there were 3 buyers for a house in 2011, you can expect 7 - 10 buyers for that similar house in 2013. Therefore, Dean suggests first time homebuyers to remain prepared for whatever is coming their way.

Dean Graziosi is an expert realtor. He has been working in the field of real estate for more than two decades. He is a well-known author, with a number of bestselling books on his credit. It is believed that Dean's books are an account of his struggle. They define how Dean has achieved such a success although he does not belong to a Richie rich family.

Dean has also designed special courses and guidebooks. His books are designed according to the needs and requirements of novice and real estate aspirants. Let us have a look on suggestions of Dean Graziosi related to real estate 2013.

1- Favorite Mortgage:

 FHA loans have proved to be most favorite loan of first time homebuyers in 2012. Campbell Communications and Inside Mortgage Finance conducted the survey. A whopping 53% of first time buyers accepted that FHA offers benefits that are not present in any other loan. FHA is government-backed mortgage.

Federal Housing Administration as it is called, is provided by private sector whereas, government overlooks the process. Following are given some of the reasons why FHA is so popular among first time homebuyers.

• It offers lowest down payment.
• The down payment is as low as 3.5%.
• Qualification is easier.

If you are planning a home purchase in 2013, probably FHA is the best option to choose. However, one must keep in mind changes in FHA i.e. change in credit score and change in mortgage premium insurance.

2- HUD Changes:

Department of Housing and Urban Development (HUD) announced changes to mortgage policies. These changes were announced in late 2012. It is mandatory for every first time homebuyer to follow these changes. The rules include:

• A stricter scrutiny of borrowers with a credit score less than 620 points.
• Stricter scrutiny for debited borrowers.
• For lender it is must to ensure borrower's DTI (debt to income ratio).
• DTI must not exceed 43%
• There is a increase in mortgage insurance premium (MIP)
• FHA borrowers will pay 13$ more MIP in 2013.

3- Fewer Homes More Buyers:

2013 promises a harder competition. There will be more buyers than for sale homes. This fact was first publicized verbosely, but now it has been proved through research. Inventory Reduction, a big housing story revealed significant decrease in the number of for sale houses. Some of the stats are shared below:

• Seattle _ 40% decrease (October 2011 to October 2012)
• Atlanta _ 37% decrease (October 2011 to October 2012)
• California _ 63% decrease (October 2011 to October 2012)
• Stockton _ 50% decrease (October 2011 to October 2012)
• Oakland _ 50+% decrease (October 2011 to October 2012)