“Is now the right time to buy a home?” It’s what every prospective home buyer asks themselves when they're tired of wasting money on a rental. You definitely want to buy a home—eventually. But is “eventually" right now?
The short answer is that it depends. The long answer? You need to think carefully and critically about your finances, the market and possible changes to the market. To figure out if now is the right time to buy, Janice Johnson, Realtor offers these ideas to think about when you're in the market for new real estate:
- Do you have 20% of the sale for a down payment? It may not be financially worth it until you do. Many lenders won't even give you a mortgage for less.
- Will you able to afford a hike in interest rates for your loan? For the first time in years, the price of housing has begun to swing upward again and there's a strong notion that interest rates will rise in the second half of 2015.
- Do you have room in your budget for a higher mortgage payment? A mortgage payment consists of PITI—principal, interest, taxes and insurance. Even with a fixed mortgage, you are still subject to pay local taxes and insurance on the house. Things could get pricey.
- How long will you stay in your home? It’s important to distinguish if you’re looking for a place more permanent or if you know there’s a chance you’ll need to move in a few years for work.
- Do you have the money for maintenance, furnishings and repairs? Once the real estate search has ended, there’s no turning back. You’ll be your own landlord, and with that you need money to replace that water heater and repair that air conditioner. Make sure there’s plenty of money in your budget for this.
If you’ve considered these ideas and said yes, it’s time to begin your search with a top real estate agent. Whether you're looking to buy, sell, or both, Janice Johnson, Realtor is there when you need her. With a pulse on the residential and commercial real estate market, Janice Johnson is a master at real estate marketing and securing fantastic, fair deals for both parties.
For more real estate agent information on Janice Johnson, Realtor, you can email her at email@example.com, or call (606) 422-1534 to speak with her personally. In the world of real estate, informed, local, one-on-one advice is the best resource you can have, so don’t hesitate to reach out today.