Are you going to rent or buy, that is the question. Many people struggle with this question each and every day. It is a hard one but there are ways to determine if now is the right time to buy. Here are just a few facts that will help you make an educated decision about your home buying quandary.
Fact #1 – Mortgage Rates Can Go Up In A New York Minute. If you keep telling yourself that you are going to wait until the rates go a little lower then you may be in for a rude awakening. Interest rates can and do go up at a moment’s notice and if you have not committed to your decision to buy a home now, it could ultimately cost you thousands of dollars in interest over the next 30 years!
Fact #2 – Rental Prices Keep Rising. The longer the housing market is in a slump the higher it drives prices on all rental properties. No matter whether it is a rental home or an apartment you are going to pay dearly for that rental that you don’t really like all that much. Talk about throwing your money away each month. Wouldn’t you rather put all of that money into your home (and pocket) instead of someone else’s?
Fact #3 – You Have A Stable Career. Buying a home is a long term endeavor and you should estimate that you will be staying in the same geographic location for the next seven to ten years before deciding if now is the right time for you to buy a home.
Fact #4 – Do You Have Enough Time At Your Current Job? Most lenders will require that you have been at your current job for two years or at least in the same industry. However, that is the bare minimum of what you will need.
Fact #5 – Plan Ahead. You should look to the future when buying your next home. Since you will be in that home for approximately seven to ten years you will need to think about what your needs will be in the future. How much space will you need? Leave yourself enough room to grow. Can you afford to buy a home that will suit your needs now and in the foreseeable future?
Buying a new home is a huge decision that will require you to really think about your long term financial and lifestyle future. When you get to the place in your life where you can realistically project your financial goals and personal needs seven to ten years out then this might be the perfect time for you to buy your dream home.