The real estate market has heated up! Buyers looking to take advantage of the tax credit are out searching for a home earlier this year as the traditional buying season usually begins around late Winter and early Spring.
Waiting could too long could cost a buyer not only money but prevent them from being to buy a home at all. The FHA will soon be tightening up their qualifications to get a loan as well as increase the cost of the financing! There is good news though! It appears that the low 3.5% down payment will remain but the seller will soon be allowed to contribute 3% towards the buyer's costs. This will be lowered from the current allowable of 6%.
Keep in mind that waiting to buy a home is dangerous to your finances. Should you buy a home now and prices drop you will still make a great investment. You will be buying a home for as much as a 45% discount from the peak pricing. You will also have your own place to call home, know where the schools are, learn your neighbors, set up roots and begin taking advantage of write offs now! Waiting could be costly if the demand for homes continues and the shortage of available homes continues. There will be more and more multiple offers, buyers losing out to all cash offers and ultimately prices will rise.
The poorest excuse for not buying a home if you are able to buy is waiting for a larger down payment. Buying now will bring you a more money than you will be able to save once the market starts the inevitable rise in prices. Get out and buy your new home now! Help yourself, your family, your neighbors and your country!!!
Your Friend & Realtor,
Tony Lewis * RE/MAX of Valencia