Should I buy a home now? That is a big question on the minds of all potential buyers.
If you are renting and wondering about buying a home? Consider the words of a bestselling author, David Bach - "...the average homeowner could be worth about 35 times more than the average renter..." The longer you rent - the longer it's going to take you to get into homeownership. The current market has frightened prospective buyers for months - but owning a home provides tax benefits, adds value to your investment portfolio (it may need a boost), allows you to build equity (it's still out there) and now could be the time to find some great deals.
Some guidelines to keep in mind:
a. Borrow 10-20 percent less than what the bank if willing to lend - that will keep you buying only as much home as you can afford.
b. Understand the amount of money you are comfortable with borrowing - and don't get caught up in buying too much home. The current trend is moving toward smaller homes and simpler living.
c. Mortgage rates are at a 50+ year low and so appealing. Good credit, documentation of your income, and a substantial down payment will make your borrowing much easier.
d. Freedom to choose from a large inventory of homes in many areas.
e. Quality of life. Buying a home can create a higher quality of life, pride of ownership, and enjoyment over the years.
f. Tax credit benefit. The American Recovery and Reinvestment Act of 2009 provides for an $8,000 tax credit that would be abailable to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Check out all the details of this option with your tax accountant.
Alice and Jim Hayes are Licensed Realtors with Loveless Realty in Libby, MT. Please call us at 406/293-8364 or 293-1926 or visit our 24-hour open house at www.alicehayes.com
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