Last week Zillow Mortgage Marketplace reported that the quoted mortgage rate on a 30-year fixed-rate loan fell to 3.76%, another all-time low. Also, according to the National Mortgage News, the recent low rates appear to finally be stimulating new mortgage applications, which went up to 9.3% during the week of Sept. 19-23. So, you may be thinking, “Is now a good time to buy a new home?” To help you answer this question, you need to consider a few factors.
First, do you plan to own the property for a long time? When you buy a home, you expect to be financially better off in the future than you are today. However, you need to own the property for at least 5 years or more in order to offset the mortgage transaction costs, any repairs, and the monthly costs of ownership. Therefore, you need to find a home that you love – one that fits most, if not all, of your current and future needs, if you’re planning to be long-term homeowner.
Other issues you should consider include:
- Do you have a steady job?
- If you’re currently a renter, the property you’re looking at shouldn’t be considerably more expensive to own compared to what you’re renting.
- Is the home fairly priced compared to similar home sales in the area?
- Is the home in a stable area?
- Is the home in good shape without needing a lot of fix-up?
- Will the payments be affordable?
- Have you done all your homework to reduce your risk as much as possible?
If you’ve determined there’s a home that is the RIGHT property for you and that you’re going to own it for a long time, you need to work with a reputable mortgage broker to lock in your loan. Grandview Lending can work with you to see if you qualify for a mortgage loan and answer any questions you may have. So, is it a good time to buy for you?
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