Buy a house now or should I wait?

One of the things homebuyers are always asking themselves is buying now versus waiting. Mathematically it could pencil out that buying a house down the line might make more sense, but you should pay close attention to all the financial contributors in your life so you can make the most informed decision possible…

The lay of the land right now interest rates are at incredible all-time lows. Long-term fixed-rate mortgage money is in the mid-3% range and potentially could go even lower if you’re willing to pay discount points and have excellent credit. This is something that you should not overlook. The last time interest rates were at these levels was in 2012. Prior to that, there was no other time in US history where mortgage rates were at the levels that are presently at.

Additionally, purchasing the house now will afford you the ability to purchase something with very little competition. It depends on each house of course, but on average you might be going to get up against one or two other offers. In the summertime, you’ll have more choices, but the competition will be greater. We also don’t know what interest rates are going to be over the summer, but it’s been said that the average 30 years fixed-rate mortgage will remain sub 4% throughout the duration of 2020.

How you determine the best time to buy a house should have nothing to do with interest rates or competition or with availability or with scarcity on the market. Granted those are all important things, but the number one most important thing to be focused on is your finances. When you purchase a house the number one thing you should be focused on beyond anything else is that mortgage payment it, drives affordability. You want to pay close attention to the mortgage payment and your ability to save after your mortgage payment and other monthly obligations are already met. You need to be able to save money regardless of whether you buy a house or not. If that is in place and you’re feeling good about your job and you’re feeling optimistic about your finances and your income is stable to rising to pull the trigger. Here’s why- if you’re going to be buying a house and you have a long-term plan in place 5-7 years or longer even if this is not the perfect home the equity appreciation, and tax advantages weighed out over the course of time when compared to renting is significant.

If you’re thinking about buying a house and really need some direction talk to an experienced lender who can walk you through a budget if you don’t already have. Creating a budget and sticking to financial responsibility is the first step in pursuing a big high ticket item like homeownership.

Looking to buy a home? Get a no-cost quote now.




Why you should wait for your credit to improve before applying for a mortgage

Why you should wait for your credit to improve before applying for a mortgage

In the current consumer landscape, securing approval for a mortgage is a significant challenge. It’s…

Here's a strategy to buy a home and set up a future refinance

Here’s a strategy to buy a home and set up a future refinance

For families looking to purchase a home, good news has arrived interest rates are slowly…

why being a picky home buyer could be an issue

Why being choosy as home buyer could be problematic

You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has…

can you buy a house with less than 600 credit score?

Can you buy a house with a less than 600 credit score?

For families were looking to buy a home one of the biggest setbacks people have…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!