If you are considering purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following questions to help determine if now is a good time for you to buy in today’s market.
- Why am I considering purchasing a home? This is the most important question to answer. Forget the finances for a minute and think about why you even began to consider purchasing a home? For most, the reason has nothing to do with money.
What does owning a home mean to you? What benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
- Where are home values headed?
The real estate market is forecasting an increase of 5.3% over the next year. In other words, a home that costs you $250,000 today will cost you an additional $13,250 if you wait until next year to buy it.
- Where are mortgage interest rates headed?
Most experts admit that over the next 12 months, rates are expected to rise. A 1% increase in interest rates can impact your monthly payment by as much as 10%! A buyer must be concerned about more than just prices. The long-term cost of a home can be dramatically impacted by even a small increase in mortgage rates.