Buying a home, one of the biggest decisions one can make in life.
I'm a Realtor and Co-owner of a brokerage. In review of all the comments in this thread, they all have value to what they are saying. Owning a home is not right for everyone, and it's buying when the time is right for you, add to that, buying the home that is right for you.
Here's some things to consider. Work with a Realtor? Absolutely, but (and this is a big "But", no pun intended) Choose your Realtor wisely. There a good agents out there, but many bad ones. Just like in any industry profession.
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If you are not a handy man, consider the following. Most foreclosed, bank owned and HUD homes will go with loan products such as FHA 203k streamline, or 203b. 203k allows funds for renovations or repairs to be structured into the loan, 203b is similiar but with lower interest rates and closing costs. The work must be done by FHA certified contractors who must complete the rennovations within 60 days of closing. This can increase your mortgage, but $5,000 in repairs of the course of 15-30 years is only a small increase in monthly payments.
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Paying an extra 20% of the principal on every payment will cut the life of most loans virtually in half, saving you thousands in interest.
Regarding property taxes, (I help all my clients with this, I believe in saving my clients their hard earned money) Homes have dropped in value, and they are assessed for property taxes every three years or so. If the home is priced at, and also purchased for much less than it was last assessed for, petition your county assessor to lower your taxes. I often find that if the home value is 35% less for instance than it last sold for, that can mean a difference of $30-$60 or more in monthly tax savings after re-assessment depending on the median price of the home in that area.
Rates are climbing, and real estate, unlike the national news broadcasts, are a highly local phenomenon. In some areas, home values are increasing. A good realtor will be able to see if they are up or down in your area, and bring it to your attention. The values won't be down forever, and rates will climb again. They will in all likelyhood never be this low again for 15-20 years, let's hope they continue to stay low for another year or two, but we are seeing them inch up again, little by little.
A prize of homeownership, is building equity, and paying off early, and what it can do for your credit. Buy well, buy low, pay off early and in 10-15 years you may find you have nothing but insurance and taxes to pay. Great for those on retirement and fixed income. It requires sound and thoughtful planning. Another benefit of homeownership is your credit score which effects everything. Owning a home is actually a car insurance discount to name just one credit oriented benefit.
Owning a home does require work on your part though, something to consider, lawns, maintenence, and so forth. I reccomend a home warranty, generally around $350 for a policy, but protects the mechanics of your home. Something goes wrong with a boiler, furnace, air conditioner, appliance, etc. they fix or replace it with one of similar value, or if you pay the difference, get a better model.
Too, if you don't want to mow lawns and perform other outside upkeep, consider a condo.
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