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Is Now A Good Time To Buy A Home?

There is never a wrong time to buy the right home. Interest rates are at an all time low, inventory and prices are excellent, and homeowners that purchase for the long run lay the foundation for a life of financial security. Purchasing your own home provides equity build up, value appreciation and tax benefits. It’s also a forced savings plan you can’t get from renting.

The Federal Reserve Board estimates that homeowners have a net worth almost 36 times more then that of renters. If you rent at $1000 a month, and even if your rent didn’t increase (even though rent goes up an average of 3% a year) you’d spend over $120,000 on rent in 10 years. None of that $120,000 is returned to you, through savings or as an investment.

Homeownership = Mortgage interest tax deduction, accumulation of home equity & homebuyer tax credit

Figure out how much you can afford:

What you can pay for a home depends on your income, credit rating, current monthly expenses, down payment and interest rate. Use our mortgage calculator for an estimate, but you’ll need to get pre-approved with a lender to know exactly what you can afford and what your monthly payments will be.

Understanding your credit:

When is the last time you reviewed your credit report? And was it accurate? To obtain a loan, the bank will evaluate your credit based on three credit reporting agencies: Experion, Equifax and TransUnion.

The bank will look at the amount of consumer credit you have been extended over the last seven years, what your highest balance has been, and what your current balance was on the date last reported by our creditor. Your social security number and employment information are used to identify you.

Trade Lines ‘“ These are your credit accounts where lenders report the type of account, date account was opened, credit limit of loan amount, the account balance & your payment history. It is estimated that 50% of all credit reports contain errors. It also shows whether you paid on time, and if not it has categories of 30, 60 and 90 days late. All of this is taken into consideration by the bank and may impact your ability to borrow money. That’s why it is good to have your credit report reviewed for accuracy, and to see if you may have a potential problem. Banks use risk-based pricing, so even if your credit isn’t perfect you’ll most likely still get a loan.