The number one question I get from prospective buyers is, “When is the best time to buy?” “Now!” is the answer I give to my clients. The reason for this is because we don’t really know what the future will bring, and you can only rely on current market data which, although useful, is not a crystal ball.
Right now, interest rates are very low, and although home prices have gone up over the last year and a half, there is still plenty of affordable housing left for most people. With home loans easier to obtain, now is the perfect time to find that perfect home. With all the talk of the “shadow inventory” that never materialized, there is no reason to think that prices are coming down anytime soon. Could it happen? Sure. One thing the last few years have taught us is to expect the unexpected!
Let’s talk about what factors you should take into consideration when figuring out if now is the time for you to buy a home.
- Do the advantages of buying outweigh the advantages of renting? There are instances when the cost of ownership can be greater than renting. Talking with a real estate or mortgage broker professional will help you determine which option is the most advantageous for you.
- Are you prepared for the prospect of maintenance and repairs for apply your new home? Does your current schedule allow you time to take care of things such as mowing the lawn, pulling weeds, etc.? With Home Owners Associations (HOAs) keeping a close eye online payday loan lenders in this area, you must be prepared to either take care of these things yourself, or pay a landscaper to take care of them for you.
- Are you counting on your new home appreciating in value? If you’ll be moving out of the state in two years or think you may outgrow your new home relatively quickly, I would not recommend buying a home.
- Are your finances in order? It is extremely important not to overextend yourself. Even though your loan officer may qualify you for a home loan, it doesn’t mean it is affordable. Ask the important questions: Can I afford this? Will I have to work more hours to make this work? Is it more or less than what I’m currently paying? How have I been doing with my current rent/mortgage payment?
- Do you need flexibility to move? Remember, when you own a home, there is less flexibility to move in pursuit of a new job, family emergencies, etc.
- Are you planning to have a family? It is always better to buy a home that can expand nicely with your future plans.
There are many more questions you could ask, but the questions above will get you started on the right path.