“Looking into my Crystal Ball”
We have been house shopping for the last 3 months and getting discouraged, do we just sign a lease extension for 6 months? We are supposed to be out by the end of April.
One more question, we keep reading about a recessing that will happen in 2020, how will this affect us if we do find a home to purchase?
Truthfully, I have seen so many recessions in my lifetime, I am a bit callus to them. There are so many prognosticators out there. Most folks that make these predictions don’t have any better guess than you and me. Here is what I shared with my clients:
“Let’s look at the long-term view of a possible home purchase. You are currently paying $1650 a month for rent. The numbers we discussed during the pre-qualification process estimated a mortgage payment of under $2000, not a huge difference, but when you factor in the tax benefit, there was no difference.
The two of you are self-employed and fortunately you are both doing well. You shared you don’t see anything that will slow your income. So, from what you have told me, not purchasing would not be in your best interest.
Regarding an extension on your lease, speak to your landlord and find out how soon before the end of the lease would you be required to resign. Also, ask if you can go into a month to month extension and what that would look like”.