The big question: when is a good time to purchase real estate?
That question has a different answer for all families. Without having a crystal ball it can be a very difficult question to answer. And the media has nothing but negative spins on the topic, am I better off waiting until the media changes it's view?
I can help you to break this big question up into smaller ones that you should first have answers to in order to make the most objective decision for your situation.
There are several general questions you must ask yourself that will impact your ability and the timing of your purchase.
Just to name a few...
1. Are you making this purchase as an investment or are you planning on living in the property?
2. How long do you want to keep the property?
3. Are you able to document your income and the ability to repay all of your debts including the new house payment?
4. Do you have any reserves in the bank (money saved that you will not use to purchase the home)?
5. What is your credit score?
6. Do you have any money to put down on the purchase?
7. Have you found a trusted professional to get this transaction done for you?
As a rule of thumb, those purchasing for a primary residence should not worry about the short term changes in the market. If you are planning on living in your home for 5-10 years, then the changes occurring now will not affect you like they would if you were purchasing as a short term investment. The theory is that you will be able to take advantage of lower housing prices now and will be in the home long enough to see appreciation beyond what you paid. Those making investment decisions need be more cautious and secure in their finances.
Those purchasing a home as a primary investment must know that options for financing their home are dwindling. Not acting now could prevent you from buying the house all together. In the last 3 months alone, we've seen 100% financing become an option of the past. Now lenders are requiring between 5% and 10% down with additional assets in the bank. People who wait to see what the media's opinion will be in a year or two years from now, may not be able to take advantage of the lower market prices now and may not have the same financing options as are available today.
There are other options for those looking for greater than 95% loans, but you must be working with a knowledgable loan officer to find them.
If there is any area above that you are uncertain to answering
Call me and we can go over the details together.
Casey Moseman - 702-271-1274