Buying a home is one of the most exciting and rewarding experiences life has to offer. For those who are taking the leap into homeownership for the first time, the journey can be both thrilling and daunting. It’s important to take the time to research your options and plan ahead so that you can make the most informed decision about your purchase. With this article, we will provide you with tips and tricks to help make your first-time home buying experience as smooth as possible.
Timing: The Right Time to Buy
One of the next questions I get asked is “When is the right time to buy”?
The easy answer is when it is right for you. The median home price in the United States has increased on a steady incline since 1951. After we came out of World War II, more and more Americans decided to buy a home, and the housing boom began. Of course, we keep hearing the big dip that we saw in 2008 – 2010. What’s comforting is where we are now in 2023. The average home price is now well above where it was in 2008 when we hit rock bottom. Even if you think you might be buying at the top of the market, the fact that you’re getting into the market will benefit you in the long run.
This next chart shows the effect of waiting. Home prices will generally appreciate over time. Be wary of trying to time a dip in the market. Buying a home is usually a long term play. Focus more on buying the right house for you and less about trying to time the market. Your dream house might be available now, but not when you think the market will be “better”.
There were many lessons learned in 2008 about housing, lending and the economy. Fortunately, our lawmakers have seen fit to eliminate the predatory lending practices that got us into that mess. Don’t be as concerned about what the market is going to do, but more about how does a new home fit into your life’s journey.
Timing interest rates
If you’re reading this, chances are that you missed the lowest mortgage interest rates in history, but don’t worry! Home ownership still has the upside that it always has, just in a more balanced market. The charts that are being shown on the internet show one that is pretty bleak, but not when you look at it in comparison to what has happened since the 1970’s. People who bought in the 70’s still made money buying and selling a primary home. Don’t let the rate discourage you. No one can precisely predict what interest rates are going to do. If you get a mortgage and interest rates drop, you can always refinance and take advantage of the lower interest rate.
Finances: Budgeting and Mortgages
Are you looking to buy a home but not sure where to start? One of the first places to start is with a detailed look at your financial picture. Gather your budget, all financial statements, tax documents and any investment information that you have. Your lender will ask for the information that you’ll find in this documentation to help draw a picture of what you can afford.
Look for Assistance: Programs and Professionals
One of the best things that you can do is to create a solid team that will guide you through the home buying process. Starting with an experienced REALTOR will help you to navigate all steps of the home buying process. Over the years I have worked with many professionals to build a team that will take care of your needs throughout the buying process and long into your home ownership journey.
Conclusion: Taking the Leap
The next step is to take the leap of a lifetime! Think about having a home that is YOURS and you can do what you want with it. Design it for your needs and your design preferences. Your first step is to contact Mike for a consultation!