Hi! Welcome back to #FabulousFriday! It's a question on every buyers mind right now...should I buy now, or should I wait? Many buyers are struggling with this question and trying to weigh out their options in today's hot housing market. Many would be buyers have been leaning towards the "wait" side of the equation. There's no question-it is still a seller's market. But buying now may still be a wise decision in the long run. Deciding which option is best for you comes down to a set of financial conditions. Here are the key considerations to help you decide on the best approach:
1) Start building equity now. That's true no matter what the real estate market is doing. Buying now avoids rising interest rates in the future. A year from now, even if prices come down slightly, mortgage rates may be significantly higher. In the end, that will cost more in your monthly mortgage payment and will impact the price of the home you may qualify for.
2) Do you have excellent credit? The best deals on mortgages go to those with a great credit score. If you have demonstrated that you are a low-risk borrower with a history of on-time payments, you might have the option for the lowest mortgage rates the lender offers.
3) If you have access to a down payment--now--might be the best time to buy. There are many ways to access a down payment, such as retirement plans, 401Ks, IRAs. In fact, Lenders feel more comfortable loaning money if you demonstrate savings and savvy financial planning. Many Lenders count these accounts in your favor and view them as a cushion if something unexpected happens.
4) Are you planning to stay in the home for a period of time? In addition to the purchase price of your home, there are closing costs you will need to pay. So, to justify those costs, it's wise to be reasonably certain you won't have to move soon-or that you will be in a financial position to transition the property and rent it out.
5) Should I wait for prices to come down? If you want to become a homeowner, but are waiting for prices to cool off-here's the challenge--housing prices aren't expected to decrease in many areas. If there is no shortage of homes for sale in the area you want to buy-waiting could save you money. However, if you are looking in an area that has been on the rise historically, you can expect that trend to continue. Inventory is still at an all time low, and without an increase in supply, prices are expected to continue to increase. So, if prices continue to climb and interest rates continue to increase...waiting may be costly in the long run.
In today's market, it is more important than ever to find an experienced real estate professional who can help you navigate the market ups and downs. At Shaffer Realty and Real Estate, our friendly, knowledgeable agents are ready to help you examine the real estate landscape and make the best decision for you and your family. Sign up on our site today and start shopping for your dream home! See you next Friday for more insider tips and tricks. Warmly, Susan