You’re tired of renting. You’re about to have a baby and expand your family. Your kids have all moved out and now it’s time to down-size (or get that mansion of your dreams!). You want to settle down and plant some roots. You need a bigger backyard for your furry friends. You want to increase your net worth.
All are excellent reasons for wanting to buy a home. But do all these reasons mean it’s the right time to buy? There are many other things to consider when shopping for a home, such as how the housing market is performing, if interest rates are rising or falling, and what loan programs are available to help you purchase your home. In some cases, waiting to buy may actually cost you more than holding out for the “right” time.
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Consider some of these factors below to determine when you should buy your new home:
- Do you have enough for a down payment? Depending on the Loan Program that best fits your financial situation, you will need to save 3% – 20% of the home price for a down payment.
- Are you waiting to see how low interest rates can get before pulling the trigger? Waiting for a lower interest rate could be a gamble. Rates are volatile and aren’t guaranteed to change one way or another, even in a season of declining rates.
- A lower interest rate doesn’t necessarily mean lower mortgage payments. If rates go down, home prices could go up, which means a higher down payment for you, and possibly higher monthly mortgage payments.
- If prices and rates both increase, it could be more difficult to qualify for a home.
- Your mortgage payment could be the same if you lock in an interest rate today rather than wait for a lower payment and end up with a higher-priced home.
These are just a few things to keep in mind when deciding if now is the best time to buy a home. To see what kind of interest rate and home price work for you and your financial situation, you can use a Mortgage Calculator or contact us to connect with one of our mortgage professionals.
Questions About Home Buying?
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Why Choose Park Square Home Mortgage?
Park Square Home Mortgage, LLC (“PSH Mortgage”) works directly with Park Square Homes for fast, reliable mortgage services. PSH Mortgage offers a wide array of competitive mortgage products with experience in every area of residential mortgage lending. We focus on providing our customers with industry best service and use cutting-edge technology to help you navigate through the lending process with ease.
Few things give you more pride than owning your own home – you will probably make no greater single investment in your lifetime. PSH Mortgage wants to help you make that dream come true. Contact us today and put our expertise to work for you! All information presented is for educational purposes only and not intended as financial advice.
Many buyers find that applying for a mortgage can trigger an influx of marketing from other companies trying to win their business. Fortunately, there are ways to prevent this flood of offers from overwhelming you during an already stressful time.
Choosing the right loan program depends on a variety of factors like certain loan program features, the loan term and your overall financial goals.