You might wonder if this is the year you should buy a home or if you should keep renting. While there are definitely benefits to both sides, today there are many reasons you should considering buying.
Keep reading to learn the benefits of making 2018 the year you find the perfect house to make your own.
Rent Keeps Climbing
The cost of rent keeps getting more and more expensive. What if you could pay the same or a similar amount and own a house? You get so many benefits when you actually buy rather than rent. If you are letting the mortgage stop you, don’t worry. There are many loan programs out there that require little to no down payment.
At the very least, get yourself prequalified by a lender. See how much mortgage you could afford and compare it to the rent you pay now. If it’s close, why not take the plunge and buy a house? 20 years from now you will be very glad you made the jump, but you have to just do it.
Interest Rates are Going to Climb
The Federal Reserve lowered interest rates following the housing crisis in an effort to stimulate the economy. Now that things have pretty much rebounded, they may start raising those rates again. It might not be tomorrow. It might not even be for another year, but why take a chance? If you can secure a low rate now and keep your mortgage payment now, you don’t want to waste time.
You’ll Gain Equity
When you make rent payments, you do not see a return on your investment. In fact, it’s not an investment at all. You pay the landlord who has an investment in the property. In other words, he gains the equity while you pay for his investment.
When you buy a home, you are the owner. As the home appreciates and as you pay your principal balance down, you earn a profit. You can let the equity sit and continue to grow or you can cash in on it if you need an emergency fund or money for another large expense.
The Market is Getting Competitive
As more and more people rebound from the housing crisis, they are entering the housing market. They are able to secure financing as lenders’ requirements have lightened up too. The more people that enter the market, the more competitive it will get to buy a home.
What does this mean for you? It probably means higher prices, as well as a bidding war. As you fight to buy the home you want, someone else is trying just as hard. You will have to bring your A game and a heavier wallet in order to win the war.
You Can Do What you Want With It
When you rent a home, you are at the mercy of what the landlord will allow. Wouldn’t you rather have a home that you could do with as you please? Whether you want to paint the walls bright purple or you want to add a room onto it, you can do as you want as long as you stick within the city and/or county’s codes.
2018 is a great year to buy a home. Even if you think you are not qualified, give it a try. You might be pleasantly surprised to learn that you can get financing. There are government-backed programs and portfolio lenders ready and willing to lend. You just have to take the plunge to buy the home.Click to See the Latest Mortgage Rates»