Great Time Buying A Home
Now that you are prepared financially, you might consider what the best time is to buy a home. Ideally, the best time is when interest rates are low, when it’s a buyer’s market, and when the move fits your current situation, such as before the start of school, so your children are settled before starting a new school.
Unlike other goods and services that enable you to pinpoint a key buying time – buying cars at the end of the tax year, for instance, or buying linens in January – there really isn’t a perfect time of year, although there are factors that do affect the timing. Include a little bit of excitement in the seriousness and you will be making a strong financial move. It is time to trade your rent payment for a mortgage payment? Does a mortgage payment sound too serious for you? It shouldn’t, chances are the mortgage payment on a new home will be very close to the amount you are shelling out each month in rent for an apartment or house.
Getting the Best Interest Rate
Interest rates, for instance, will affect your monthly payment as you saw in the section on costs associated with buying a home. When rates are low, you’ll pay less. When rates are high, your payment will be higher. Economic factors such as inflation, cost of living and market conditions, affect interest rates. In the past few years, rates have been at all-time lows.
Note that if you have a high-interest mortgage, you may be able to refinance to a lower rate. Likewise, if you have an adjustable-rate mortgage, you may convert to a fixed rate mortgage.
Buyer’s or Seller’s Market?
The type of market also affects pricing and availability of homes for sale. In a seller’s market, the demand for homes is high. Homes sell quickly and usually at the asking price or higher. Sellers have the advantage in negotiating. In a buyer’s market, the market is slow: Houses may sit unsold, you may find more choices and you have the bargaining edge. Your real estate agent can tell you more about the current market. If you are buying a home for the first time and are able to buy during a buyer’s market, you are in luck. If you are buying and selling, you break even. Yes, you might get a great house for a great price, but you also sell your home in that same market.
First Time Home buyers Assistance
We all know that out of the mortgage banking crisis has come tougher restrictions on getting a mortgage. The requirement of higher down payments and higher credit scores being two of those restrictions. Take a deep breath, that is not the case for first-time home buyers. Don’t have enough cash to make a 20% down payment? You don’t have to. First-time home buyers still have the advantage of using government backed FHA loans. These loans have not changed and require very little down, typically 3% of the purchase price. In addition, you can have less than perfect credit and still qualify for a FHA loan.