Wall Street Journal's 10 Reasons to Buy

     The Wall Street Journal just published a short, concise list of reasons that make this a very good time to buy a home.   I think it is such a good time to buy that I purchased a home earlier this year.  The interest rates were great.  I can remember my first loan in 1990.  The interest rate was about 11% and IT WAS A VARIABLE RATE LOAN.  That loan taught me two things.  One, stay away from variable interest rate loans and, tow, get ride of mortgage insurance as quickly as possible.  The interest rate on my loan early this year was 5.5%.  Today, buyers can find interest rates, as low as, or lower than 4.5%.  If rates go even lower, take advantage of the lower rates with a re-finance.  If rates go higher, just enjoy the low rate on your fixed rate loan.  For the other nine reasons that it is a good time to buy go to Realtor Mag.

     On the other hand, there are still some reasons that it is a tough market to purchase a home now.  It can be difficult to get a loan now.  Lenders are definitely investigating buyers more in depth and have put some rules in place that can make it more difficult to qualify for a loan.  Earlier this year, I had a very qualified buyers who almost did not qualify because he was close to having too many loans. 

     Another frustrating part of the market now is getting through the purchasing process, especially if the transaction is a short sale.  The house I purchased earlier this year took about seven months to complete the transaction.  Seven months of waiting for the listing agent to negotiate with the two lenders that had to accept the short sale offer.  Seven months and maybe the whole deal falling apart.  Some short sales take a shorter period of time and some even take a longer period of time than my purchase took.  It can take a lot of patience to get through that period of uncertainty, but I think buyers that can get through the process will be rewarded. 

     On balance, the advantages outweigh the disadvantages to purchasing a home right now.  Of course, the most important aspect in purchasing a home is the security of any buyers situation.  Consider putting a little larger down payment and buying a home that is a little less expensive than you can afford.  Enjoy your home and wait for the market to turn around.