Buying your first home is perhaps the biggest financial decision you will ever make in your life. At the end of the day, everyone’s situation is unique, but when it comes down to evaluating if you are ready to purchase your first home, it is important to ask yourself a few important questions before moving ahead and exploring home ownership.
We will first tackle the question that is on many potential homeowners’ minds right now and that is, is now the right time to purchase a home?
While recent history shows a decline in real estate prices, the bottom line still remains that if you are planning to purchase a home to live in, we may soon look back at the present day as one of the best times to do so. While housing prices may not skyrocket anytime soon, there are a couple of factors that make now such an opportune time to purchase a home.
First of all, mortgage interest rates are at historical lows which means that if you a purchase a home in the current market you can lock into an interest rate that you may never have to worry about refinancing for a lower rate down the road. Even more important, this provides you a less expensive payment right now. As we have detailed in a recent article, for a large part of the United States and specifically locally here in the Phoenix area, statistics show that owning a home really is less expensive than renting in a lot of cases.
In addition, on the topic of affordability, we are also still currently at the bottom of the recent housing downturn, which provides for home prices that are dramatically lower than in recent years. While it is anyone’s guess as to when home prices will eventually move upward, the market seems to have at least initially begun to level, which is good news for anyone looking to buy now.
Finally, when it comes to actually picking out your first home, there is still a large amount of inventory in the marketplace (which of course is one of the reasons we still have not seen an upswing in prices) which provides buyers with a large amount of choices to choose the perfect first home for themselves.
Therefore, while no one knows exactly where housing is going next, there are many factors which make now an opportune time for someone looking to buy and live in a home themselves for the next few years.
Stay tuned for our next article, when we tackle the next major question when it comes to buying your first home; can I afford or qualify to purchase my first home?
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: firstname.lastname@example.org or online at www.strategicmtgaz.com