Why You Should Buy a Home Now Instead of Waiting

01.05.16 by

Why You Should Buy a Home Now Instead of Waiting

Why You Should Buy a Home Now Instead of Waiting

One of the biggest decisions that a single person or a couple can make is to purchase a home. It is a tremendous investment and a long-term commitment. This leads many to consider waiting until “the time is right.” However, there may not be a better time than right now!

Renting and buying each has benefits and drawbacks that you will need to weigh when making your choice. Your current and projected financial situation is likely the largest factor regarding your ability to purchase a home. If you have a good credit score, a comfortable savings account and secure employment, consider investing in a home rather than continuing to give that money to someone else each month in the form of rent.

The words Interest Rates on a blacktop road and a percent sign at the top of the street, symbolizing the rising interest rates due to economic factors and conditions

As the housing market continues to recover, interest rates everywhere are on the rise. On top of that, the asking price of residential properties in many parts of the country is steadily increasing. This combination is anticipated to create a seller’s market in the foreseeable future. The longer you wait, the more money you will pay long-term and the more difficult it may be to find that ideal property.

One of the most important benefits that you will receive by purchasing now is that you will build equity in your investment. Remember that many experts anticipate a seller’s market in the near future. If you decide at some point down the line to relocate, that seller’s market will work to your advantage. The equity you build will prove far more useful than a good rental history!

Concept of your home equity safe. Or keeping your home safe..

If you have never owned your own house before, you may not realize the tremendous tax benefits of home ownership. By itemizing your federal income tax return, you can deduct the money you pay for interest on the mortgage and your state property taxes. This perk offsets some of the costs associated with purchasing a piece of property.

By selecting a fixed-rate mortgage, you can keep the same monthly payments for the term of your loan. Unlike rental prices, which can rise dramatically with little warning, you can rest assured that your mortgage payment remains the same. Property taxes and insurance costs may still go up over time, but these are often easier to budget for than rising rental costs.

House keys over the hundred dollar banknotes against wooden background

You may be able to turn the house into a rental property further down the line. When you and your family are ready for a larger home, you may decide to rent out your first one, rather than selling it outright. Make certain that you will be able to cover all of the expenses associated with the property with the payments, or you will end up operating at a loss. If you decide that this route is the right one for you, consider using a real estate rental agency or professional property management company instead of finding renters yourself.

color your home

color your home

While not a financial reason to buy now, the freedom to change your décor is also something to consider if you’re looking at buying. As long as you are living in the home, you have the right to decorate in any manner you wish. Change the paint colors, update the flooring, add granite or remodel your bathroom. The choice is yours and can even add equity to your house. This is a freedom that many apartment dwellers crave but simply aren’t privy to.

Buying a home now makes sense if you can afford it. Some of the advantages are outlined here, and there are many others to consider as well. Discuss your choices with a qualified Realtor and mortgage broker, and you just might find that the keys to your new property are soon in hand.

Sold Sign

About the Author

Patrick Rogers runs Asurent Property Management based out of Medford Oregon. If you are needing property management services in that area, you can learn more at <a href=”http://www.medfordpropertymanagement.com/“>MedfordPropertyManagement.com</a>.

Know Your Mortgage Options

08.22.09 by

If any of your friends or family have recently applied for a home loan, you’ve probably heard that lenders are nervous, with tough new rules and demands for stacks of paperwork. Good mortgages are still out there, but you should be prepared before applying.

First, understand how your credit score impacts the interest rate charged on your loan. If your score is 720 or higher on the scale of 850, you will qualify for the best rates. If it’s between 700 and 719, you could expect 0.375% added to that rate, while a score between 680 and 699 might add 0.5%.

Next, determine how much you have available for a down payment, and how that will affect your loan’s terms. A “conforming loan” (that would be purchased by Fannie Mae or Freddie Mac) will require a minimum 10% down payment.

However, if you don’t have that much to put down, you can investigate a Federal Housing Administration (FHA) or Veterans Administration (VA) loan. These government-backed loans are targeted toward those with lower credit scores and only require a 3.5% down payment.

You can even use this year’s First Time Homebuyer Tax Credit to help pay closing costs, buy down the interest rate, or add to your minimum down payment. Just have employment, banking, and tax records organized, and be patient while overworked lenders review your application.

We know and understand the current financing methods available on the Treasure Coast of Florida. Why not visit our website or call us at (772) 888-2885.