Should you buy a home right now? Can you buy a home right now? Experts are saying to wait, but these are also the experts who were completely wrong about what would happen the past two years, so maybe don’t listen to them that closely. The fact is that you are tired of paying so much for rent and you want your own home, something that you can turn into a long-term investment but also a place to hang your hat.
Buying a home is an amazing experience to go through and it requires patience and planning. You cannot just walk in and decide you want a place. You have to prove that you are a qualified buyer by actually becoming one. This means you need to get pre-approved for a loan that is substantial enough to cover the cost of homes in your price range, you need to select an area you want to shop in, get an idea of the type of dwelling you want and so forth. Then, once that’s all done, you can start looking and see if you like anything.
What’s Keeping Others From Buying
A mix of prices becoming too high, increased interest rates and low inventory has led people to put the brakes on their home-buying plans, at least for the time being. Because everyone is different, everyone may have different reasons but the majority of people are holding back because of at least one of those reasons as well as others.
Before you start to plan on what type of home you want, you have to be aware that this will take time. Even if you find a great property at a great price, there will be real competition and it’s going to impact your chances of getting a property. Remember, there are no hidden gems anymore. If you are looking at a place, you can bet that dozens of buyers and investors have looked at it too. So, don’t focus on a steal, focus on the house you want to buy for yourself.
Why That’s Your Advantage
The one good thing about all these issues that are keeping people from buying homes is that they could work in your favor. Yes, some of those issues are keeping you from buying right now, but this is where many are saying you have a unique opportunity. Even if home prices drop, they are expected to rebound as soon as rates go back down. So, if you are waiting for a time when there’s plenty of selection, affordable options and plenty to choose from, it may not happen. However, if you are looking to get a good deal on a property and not pay over the top, you may be moving in sooner than you expected.
There are literally dozens of grants and programs out there that assist buyers by lowering rates, removing the need for a downpayment and more. These options are usually not available for investors, but if you are buying your primary residence, you have major advantages that can help you save now as well as years after you have purchased the property. These advantages mean you could get the house you want now, instead of waiting for the perfect moment which may not come up, especially for the house you want.
Working With A Realtor
What realtors recommend you focus on right now is how to make a purchase more affordable for yourself. For example, if you are buying a home and you have $40,000 saved to put as a down payment, you could buy a house where the cost is over $400,000. The problem here is that you will not be putting down 20% and that means you will have mortgage insurance which will raise your monthly payments by hundreds of dollars month. Add that to the increased rates and you can see why monthly payments are too expensive.
This is where you see realtors truly work their magic. In this situation, your realtor will help you look for options you may have with lenders or even sellers where your current finances could work in a better way. How can they do this? Either by considering the options you are qualified for that you may be unaware of, or by showing you how to work with a seller who has not been able to unload their property in months. Desperate sellers create greater advantages for buyers.
Learn Your Borrowing Options
Did you know that there are so many programs in place to help people buy homes? Each area offers different options but people who are veterans, teachers, nurses, first responders, members of a credit union or something else can all potentially qualify for loans with different advantages that makes either the initial purchase or the long-term payment for the property much more affordable. Imagine if you were trying to buy a home buy you did not have 20% down and the interest rates were too high. That’s the same issue most buyers are facing now. However, as a veteran, for example, you may qualify to buy without a down payment, and not have to pay any mortgage insurance, while also getting your loan at a lower rate than others.
These two benefits alone could lower the monthly payment of someone buying a home as much as $500. If that amount is enough to keep people from buying a home, saving that much must be plenty to give you an advantage that other buyers do not have. That advantage will allow you to get your house now and not have to wait.
If you are concerned about the increased prices and want to wait for them to drop, it’s a good strategy but you have to remember that the chances of landing the perfect house once rates or prices drop is not realistic. There are literally millions of buyers and investors waiting for the same situation which is why prices are expected to rebound quickly. That’s why, if you find a place you love and the price is reasonable, work with a realtor to figure out what your options are.
