Part Two – Is Now a Good Time for YOU to Buy a Home?

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?

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