Home Purchase

When is the right time for a home purchase?  Is now a good time to consider a home purchase for you?  A home purchase is normally the most important investment for most hard working Americans and many potential home buyers are hesistant in purchasing a home due to the real estate and financial collapse of 2008.  Many potential home buyers have witnessed home values sky rocket the past two years and are afraid that there might be another real estate market correction.  Statistics prove that spring time is the busiest time of the year for home purchase and home listings.  Many homeowners are waiting to list their homes in the spring when the weather breaks.  Regardless, if you are a potential home buyer, you need to decide when it is the right time is for you to purchase a home.

Things To Consider In Deciding Whether Now Is The Proper Time For A Home Purchase

There are several things you need to take into account if you are a home buyer to see whether right now is the right time for a home purchase for you.  Do you have a stable job that is secure for the next three or more years?  Do you have fair credit and have you been paying your monthly bills timely for the past year?  Have you had a prior foreclosure and/or bankruptcy and if so, have you met the waiting period requirements after filing bankruptcy or having a prior foreclosure?  Do you have re-established credit for at least a year?  Do you have the proper minimum 3.5% down payment and if you do not, do you have a family member that can gift the down payment for your home purchase?  Are homes appreciating or depreciating in the area you intend to purchase the home?  Has home prices sky rocketted in the past year or are  home prices falling?  Nobody has a crystal ball but you might want to speak with a professional realtor and make sure you are not purchasing a home in an area that keeps on depreciating or keeps on appreciating.  The best area to purchase a home is an area where it is stable.

Contact A Mortgage Lender

Whether you are interested in purchasing a home now or at a later date, contact a mortgage lender to see whether you qualify for a residential mortgage loan now and if you don’t, what you need to do to qualify.  Even if you qualify now, your credit scores can possibly have room for improvement by doing some quick fixes like paying down some debts or lowering your credit card balances to optimize your credit scores.  You will be surprised how much your credit scores will improve and boost up by just paying it down prior to you applying for a mortgage loan.  Your mortgage loan originator should be able to help you for that.  It does not cost you a cent to consult with a mortgage loan originator.  A good reputable mortgage loan originator will help you improve your credit scores in order to get you the best possible mortgage rates.

Home Purchase Versus Renting

Another thing you need to consider is how much you are currently paying renting.  Sometimes a home purchase might be more advantageous to you because your mortgage payments can be the same or close to your current rent payments.  There are many advantages with a home purchase too such as being able to write off the interest expenses as well as potential appreciation.  You are also not wasting your monthly rental payments as a homeowner.   You are paying down your mortgage balance every month with every monthly mortgage payment.  A disadvantage for a home purchase is if you are only on planning on living in the area for a short term.  If you intend in moving in a few years, it takes time to sell a home.  These are considerations you need to think about if it is the right time for a home purchase for you.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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