Should I Stay or Should I Go Now?
The million dollar question, should I stay, and continue renting, or should I go, and become a homeowner? Sometimes, I think first time homebuyers are looking at this question as a million dollar question, and really, it is not.
Are we at the bottom of the declining market, or still dropping? There are “experts” all over the internet in both camps telling us we are at the bottom, and others saying more to come. This is making it a more difficult decision for the first time homebuyer than what is needed.
The real question that needs to be answered, am I ready to become a homeowner? If you can answer yes, then move forward and do not be paralyzed by fear of the market dropping more.
Talk to an agent to figure out what type of home you would like, and talk to a loan officer and figure out what type of financing is available for you situation. Those are the questions that you should be asking, as the answers to those questions give you your buying power.
Your real estate agent is going to help prepare and answer your questions on what type of home do you want, and, where do you want to live. The agent can help you determine, do I need a
move in ready house, or, am I ok with a few improvements that will be needed. And, how do I determine what to offer the seller. The real estate agent has all the keys to all the homes, and will get you out looking.
Your loan officer is going to help prepare and answer your questions on what type of financing do you want, and what is going to meet your mortgage goals. The loan officer can help you determine, do I need to work on saving for down payment, or credit repair, or am I ready to go out and make an offer today. The loan officer will be able to work up the numbers for you on cost and payment, so there are no surprises when you find your dream home.
So, for a quick example, to prove it is not a million dollar question…If you had a loan amount of $150,000 in today’s market, with an interest rate of 4.5% (just an example, as rates can and do change on a daily basis) your principal and interest payment would be $760.03 per month. If you wait a year, and the same property decreased, and now has a loan amount of $140,000, but interest rates are now
5.5% (just an example, if I knew what rates were going to do, I would call it in from the beaches of the world) your principal and interest payment would be $794.90 per month!
Shouldn’t you go with what is known today… instead of being afraid of the unknown? Should I stay or should I go now, is not really your question.
Are you ready to be a homeowner?
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