Buying a home is a big investment that requires careful thought and analysis, both regarding your financial situation as well as what you want out of a home. To help you break it down, we’ve put together a few reasons why now could be a great time to make the move and achieve your dream home.
Other buyers are on the hunt
That house or community you keep driving by or looking at online? It’s not necessarily going to be available tomorrow. Okay okay, you already knew that, but it’s still worth mentioning. There is a good chance another homebuyer has their eye on the same house as you, and the best solution is to go get it first. Plus…
It’s probably more affordable than you think
We know homeownership is a big investment. However, many overestimate how much is necessary to put down on a home. And in some cases, you might not have to put down anything at all, depending on whether you qualify for certain zero-down loans or down payment assistance programs. And also keep in mind that lenders often allow gifts from family or friends toward your down payment or closing costs—up to the full amount.
You could start building equity today
What’s equity? That’s the extra money you pocket from your home’s increase in value from the time you bought it. It’s also additional wealth that would have gone into your landlord’s pocket had you rented instead.
However, equity isn’t a guarantee, and occasionally home values go down rather than up, so you have to factor in your risk tolerance accordingly. But even with occasional dips, home prices have steadily gone up nationally over the last century, providing many homeowners with a nice chunk of change.
Waiting could also cost you in other ways
We covered how renting could cost you potential future wealth by continuing to pay into your landlord’s investment rather than your own. But waiting could also cost you in the event that home prices rise, and also in the event that mortgage interest rates go up. Either scenario would increase your future monthly payment.
Plus, both prices AND rates increasing would mean an even more costly future home purchase. So if your finances are in good shape today, buying now is a great way to lock in a payment that you know you can afford, rather than rolling the dice on what payments will look like in the future.
Convinced that buying a home now is the right move? Start shopping today.