Are you ready to buy a home but aren’t sure if now is the right time? People usually hesitate to buy for two reasons: time and money. As you begin to weigh is now is the best time for you to buy, consider: how long are you planning on owning the home and can you afford to buy?
Do you have enough for a down payment? Most lenders require a 20 percent down payment or will charge you private mortgage insurance (PMI). To decide what is the best option for you, speak with your loan officer or lender.
What about the increase in home prices? Home prices are on the rise and with the economy constantly improving, they are bound to keep moving up. However, as you put this into consideration, remember the best decision you can make about buying a home is to decide if it is right for you. If now isn’t the time, don’t do it. You will know when the right time is.
Have you budgeted for monthly expenses? When buying a home, the first mortgage payment can be expensive because you will pay these four things: the principal, interest, taxes, and insurance (also known as PITI). If you have fixed-rate mortgage, you interest and principal will remain the same. However, taxes are inclined to go up depending on what your local county government decides or Homeowner’s association decide.
Ready to buy, but still have your doubts? Talk with your loan officer at your bank or credit union to help you decide if now is the best time.