If you’re thinking that it’s time to purchase a home now, many people are probably trying to give you advice. They may have your best interest in heart, but they might not know exactly what your needs are. And they also probably aren’t totally aware what the real estate market is like. So if you’re thinking about buying a home now, here are three questions that can help you decide if the time is right for you to purchase.
Why are you even thinking about purchasing a home?
Many people will give you advice that it’s a great financial investment. However for most people the reason to buy a home really has nothing to do with money. A recent survey says have the top four reasons Americans by home are:
A home is good place to raise your children.
It’s a good place for your children to get a good education.
It’s a place where your family feels safe.
A home is good place to raise your children.
It’s a good place for your children to get a good education.
It’s a place where your family feels safe.
It’s a place where you have more space for you and your growing family.
And, it’s a space that you have total control over.
Where are the home values heading?
Let’s face it, home prices are rising. We are now at a spot where we have 63 consecutive months where homes have increased in value. Over the past year I’ve seen a forecast of 5.3% raise in values.
Let’s examine this. If you purchase a home today for 250,000, that home will cost you $263,000 plus if you wait until next year to purchase that home. This means that if you wait, it may cost more to purchase the home if you wait until next year.
Where are the interest rates for your mortgage going?
As a buyer, you have to think have more about more than just the price of the home. The long-term cost can be impacted significantly while just a small change in mortgage rates. Most people in the industry are of the opinion that mortgage rates will rise. Since the Federal Reserve has said that they will be raising rates, this is probably true. So in addition to waiting, and waiting for the prices to rise on the house that you want to buy, the interest rates will be going up sightly. And this will also affect your monthly payment.