With spring buying season upon us, the age old question is being proposed to potential buyers. Should you buy a home or continue to rent? The buzzword in the news, at parties, on your social media pages, and at work is home buying. Should you jump on the bandwagon and find a realtor and start looking for the American Dream? The short answer is if you are ready, there is no better time but the present to look for a home.
How Do You Know If You Are Ready?
One of the major indicators of knowing you are ready to become a homeowner is that you are out of debt and have savings for a down payment. While 20% down payment used to be the benchmark for homeowners to purchase a home, the trends are shifting. There are plenty of down payment assistance programs as well as low down payment options available that would not require a large deposit on your loan. What is most important is finding a monthly payment that works for you and stick to it. In most cases that payment will be equal or close to your current rent payment.
This is a market you can find value to buy. Reason being is we have been dealing with a National Shortage of homes for sale. This was compounded by rising interest rates. With a long winter behind us homes have been sitting on the market longer than usual. This is the type of market you can find value. With that being said, you still need to be careful in your search. A lot of markets are still overpriced and you do not want to overpay for your investment. Working with a local realtor is a great way to get your pulse on the market you are looking to purchase in. They will know what the going rate for the type of home you are looking for and will know the recent sales in the neighborhood.
Thinking that you have the home buying fever and are ready to start looking for the home of your dreams? Check out Ralph DiBugnara’s video here and learn his three tips for avoiding a home buying nightmare!