With a whiff of spring gently scenting the air, many would-be home buyers are asking;
AS PRICES CLIMB, CAN I STILL AFFORD TO BUY A HOME?
By the time a dozen or so Virtual Tours available online have been completed, 11 of those homes will have gone under contract. In some cases multiple offers will be under consideration.
No one should rush into the purchase of a home, it is a considerable commitment and all of the pros and cons should be carefully weighed out.
However, if you’ve done the weighing and come to the conclusion that buying a new home isn’t just a good idea but it’s the most cost-effective solution to the question “Where am I going to live?” the time has arrived to put aside the “virtual” shopping, pick up the phone and get started on your journey to homeownership!
Since you’ve been looking online, you’ve probably noticed that prices have been creeping up since last year and wondering if you can still afford one of those beautiful homes like those you’ve been stalking online?
Great news, you most likely can!
Doug Duncan, Fannie Mae's senior vice president and chief economist, says optimism about economic conditions is high. Many of those surveyed indicate their household incomes are substantially increased from last year.
The two main questions you need to answer now are:
1. Is your employment situation stable? You’ll need at least two years' history for a mortgage application unless you have the cash to buy outright
2. Will the savings account cover closing costs and down payment? Although there are loan options that require less than the conventional 20% down, you will encounter some costs to close a purchase
If it were me and I was ready to leave the rental market behind, instead of a new car or vacation, I think I’d put my tax refund to work getting me my dream castle this year!
Considering the climate of the real estate marketplace, these are the ways I would prepare to battle and win the castle of my dreams:
· Have my mortgage application fully approved and in hand or other finances ready to go
· Having already done due diligence in online searches, I would know what I want compared to what is available in my price range
· When I see it, I would be prepared to move quickly to secure my dream castle so I don’t lose it to another knight in shining armor (competing buyer)
One dragon you may need to slay involves the lean inventory of existing homes for sale. One of the ways to think about overcoming that particular dragon, especially if you’re not in too big a hurry to move, would be to consider buying a brand new home.
Since good information about market conditions and options available are essential elements in making the best decision for each individual circumstance, a conversation with a local agent would be an excellent first step in assuring victory in preparation for storming the castle.