In today’s uncertain market, a number of people are wondering if now is a good time to buy? They asked if the market has bottomed out? Will interest rates begin to rise? But, the real question that should be asked and answered, “Is now a good time for YOU to buy a home?”
For seasoned investors with deep pockets who can afford to invest in short-term property that can be flipped in realty-show times of 31 days, the answer is yes. For those who qualify and find their future home in a community that meets most of their needs, the answer should also be yes. Why?
– Right now money is cheap, but interest rates are beginning to rise, gradually reducing a buyer’s purchase power
– Beginning October 1, conforming loans currently up to $729,750 will be reduced to $625,500 maximum.
– The federal government is proposing new mortgage finance rules under which only those who can afford
a minimum of 20% down payment on a conventional loan will get a shot at the best interest rates and terms. This
may not take effect until mid-2012, but that’s just around the corner.
– If you wait until new regulations under the proposed QRM (Qualified Residential Mortgage) require that
consumers spend no more than 28% of their gross monthly income on housing-related expenses, will you qualify?
For many consumers, there are probably a number of questions that can give rise to pause before making a substantial purchase for a home. Those questions should all certainly be asked and answered. But the one question you probably don’t want to ask too late is: Why didn’t I buy instead of waiting?