With so much talk about how this is such a wonderful time to buy a home it can be easy to get caught up into thinking YOU should be buying... whether you are ready or not. Regardless of the housing market and financing conditions, it's only a good time to buy if it's the right time for you.
Wondering if you are ready? Here are some signs you are...
- You have been looking at homes for sale on the Internet and at open houses for so long that you almost feel like a Realtor.
- You are ready to stop dreaming and start searching for a home to actually buy.
- You know that no home is perfect, but are ready to find the one that fits you the best and embrace it warts and all.
- Your credit and finances are in order.
- You are ready to get pre-approved for a mortgage (if you aren't already) and you know where your down payment is coming from.
- You have a steady income and have budgeted not only for your mortgage, taxes and insurance... but also for utilities, maintenance and unexpected costs of homeownership.
- You know how long you plan to stay in the home you buy... and have a contingency plan if those plans change.
- You recognize that it is possible prices could go down a little more but are still at bargain prices going back to 10-15 years ago.
- You want to take advantage of the lowest mortgage interest rates in history and recognize that if prices were to drop 5% you would save $10,000 on a $200,000 purchase; but if interest rates increase from 4% to 6% you will pay nearly $78,000 more in interest over the life of a $200,000 loan.
- You understand that prices and mortgage interest rates are combining to create a 'perfect storm'... likely making this the best time in our lifetimes to buy a home.