The housing market is HOT…and yet many are still sitting on the fence on whether not is a good time to buy. I recently spoke to a potential Millennial homebuyer who just received her Bachelor’s Degree, has a great Managerial career, money in the bank, and good spending habits. At her graduation party, she had told a compelling story about how her grandmother, who helped raise her taught her three very important lessons that she holds dearly with her: 1) Get an Education, 2) Keep Your Finances in order 3) Own your own home. Her burning question to me was if now was the right time for her to become a homeowner or should she wait until after she enrolls for Law School.
Are You Ready to Buy? Often this is the first conversation that serious buyers will have with their real estate agent…and at the end of the day only the buyer will know if it is the right time or not. However, I’d like to give you some things to think about...
Your Credit Rating. Lenders use your credit rating to determine the amount of a home that you can afford. If your credit score is too low…work with a Credit Counselor to work on increasing it. This in itself can take time, but it's better to take the time you need to get your credit score higher than to pay for with a higher interest rate.
Your landlord is banking from your rental payments. In 2012, rental payments increased and have continued to rise into 2013. Yes, when renting you have little or no responsibility cost for maintenance, or no worries about paying property taxes. However, there are many tax benefits of homeownership that renters miss out on. Not to mention the freedom to decorate or landscape your home however you would like to.
By making timely mortgage payments, you are paying down the debt you owe and build equity. Equity is the difference between the value of your home and how much you still owe. You may not own your home outright (until the end of your mortgage period), but your investment has a cash value.
Mortgage Rates are climbing and despite the rise in the 30-year mortgage rates…it is still remains relatively low, helping to keep housing affordability high. It’s better to begin the process of purchasing your own home then waiting because interest rates are slowing getting higher.
Home Prices are rising as a result of the low inventory and high demand. Yet, buying a home is STILL cheaper than renting.
Path To Homeownership. Purchasing a home is a process and incorporating the best strategy for your situation will enhance your homeownership experience. If you are looking for a home in the Central Valley: San Joaquin, Stanislaus, and Sacramento Area to put together your Homeownership Strategy, visit our website www.MotherandDaughterRealtyTeam.net/PathToHomeownership. We will contact you immediately to put you on your Path To Homeownership!
Interested to know what our clients have to say about The Mother & Daughter Realty Team? Read The Mother & Daughter Realty Team testimonies at www.motheranddaughterrealtyteam.net/Clienttestimonials.