Buying A Home, Now or Later

Some would argue it is a home buyers market. Interest rates are low and certainly there are more homes available that ever before. Many people are wondering if now is the time to buy a home.

Buying a home is a major step in anyone financial goals and that is the first question you need to answer. Why do you want to own a home? Owning a home is more that making a mortgage payment. The expenses of owning a home can make it cost prohibitive for many people.

Deciding how much home you can comfortably afford is another question to consider. Focus on your current budget. Will adding mortgage payment and the inevitable expenses force you to sacrifice other financial goals? The mortgage lender will likely inform you that you can qualify for more of a mortgage than you first considered. Disregard this and listen to your own instincts.

You lender will consider your credit score, your closing costs and your down payment when qualifying you for a loan . As a general rule a credit score of under 620 and you might consider holding off your home purchase until you can improve your score.

A down payment of somewhere between 10 and 20 percent lest prospective lenders you are serious about your financial commitment, and saves on PMI private mortgage insurance.

The biggest advantage to owning a home is the tax advantages. Building equity is normally considered when buying a home versus renting; however don’t expect rapid appreciation of your property in this environment.

Owning a home is still considered the American Dream. Holding off on your dream or buying now should be carefully considered before making any decision. Real estate once had a place of prominence in the investing world, however it can now be said people can and do lose money investing in real estate. That’s seems strange to say but it has become a truth in our society