Are you tired of renting but find yourself on the fence about buying a home? Concerned that the cost of homes is too high, or interest rates are rising? If you want to buy a home but are waiting for the “right time,” that time may be now. Talk to a mortgage lender. A mortgage lender will be happy to put together some purchase scenarios tailored to your circumstances, your home loan desires, your current financial status and your future financial plans, as well as the real estate market that you are considering purchasing in.
In the meantime, there some things to consider when you’re thinking about purchasing a home.
What are the costs of homes where you want to live? In Colorado and around the country, there is a need for affordable homes, and home prices may seem high. However, if you wait a year or two to purchase, the cost of homes may rise along with interest rates. A 1 percent increase in interest rates can make a big difference in your payments. If either home price or interest rates rise, or, if both home prices and interest rates rise, you could find yourself paying hundreds of dollars more in your monthly payment.
How long do you intend to stay in the home? Are you planning to stay in the house for only a few months, a year or several years? The home you buy doesn’t have to be your last home, but it often makes financial sense to plan to stay in it for at least a few years.
What is your financial status? Is your job stable or are you planning to leave it soon? How much money do you have saved for a down payment? Will you be able to continue saving after you make a purchase? A home is a financial commitment, and you’ll need to be committed to it.
Is your rent rising? If your rent continues to rise, you may find that buying a house now makes more sense, as well. Remember: the idea of having to put 20% down is a myth. There are loan options that let you put as little as 3% down.
What lifestyle are you seeking? Are you considering marriage, or starting or growing your family? Are you ready to tackle home repair projects and other home maintenance chores? You need to consider your lifestyle when making this decision.
Purchasing a home is both a financial and an emotional decision. If you’re ready to become a home owner, now may be the right time for you to make a move. If you want to discuss this more, contacting a trusted mortgage loan officer who will keep your best interest in mind is your next best step.