Can I afford to buy a home?

So, you’re thinking about considering the idea of buying a house.

Maybe one or more of these statements describes your reason for making the switch from renting to owning:

• I just feel ready for a place that’s all my own

• I think I can pay the same amount (or less) for a mortgage as I do in rent.

• A home is an investment, and I want to start building equity

• I’m starting a family and I need the space and stability

• I want a laundry room, or a garage, or backyard, or etc….

Only you can decide if you’re emotionally ready for home ownership, but it’s true that there are plenty of financial benefits:

• You can usually deduct mortgage interest on your tax return

• You can build equity in your home

• Historically, homes have proven to appreciate over time

• You can avoid increases in your monthly payment

Those financial benefits come with financial responsibilities.

Purchasing a home at a price you can afford is key to successful home ownership — that is, maintaining home ownership. But how do you know if you can afford to buy and maintain a home, and how much home you can afford?

The answer to those questions starts with you – how much do you know about your own financial health? What’s your credit score? Do you have a household budget? How much do you have saved and how much of that are you willing to put toward a down payment?

Ask Your Realtor A Question. Any Question.

Is there ever a question you CAN’T ask a Realtor? Never. When it’s your future and your money at stake, you owe it to yourself to pose any questions that eat at your gut, so ask away. We’ll answer a few common ones for you, but we think you’ll get the idea.

Do I really need to replace my carpeting before the first open house?

If it’s worn, smelly, discolored or worn out and YOU were a potential buyer walking through your house for the first time, how would you react? Buyers think about two things when they tour a property that has not been updated or repaired: time and money.

We are smokers. Do we really have to worry about what our home smells like?

Looking at online photos of your home shows one thing. Walking through the front door and smelling the smoke that has permeated your flooring, drapery, cabinets and even furniture are an entirely different experience. Many a buyer will turn on their heels right there in your entryway and head for the next listing. So yes, Be concerned. Be very concerned.

Is it okay to decorate my home for the holidays while it’s on the market?

Absolutely! “Tis the season”. But if you are prone to filling every nook and cranny with happy Santas, hanging stars and extra Christmas trees, this is the time to scale back. You’ll obscure spaces that might otherwise be considered spacious.

Does having a dog make my house harder to sell?

Not if you’ve already dealt with and remediated (1) doggie odors (2) doggie damage and (3) your furry friend’s tendency to bark or scare homebuyers.

Can I keep my displays of vintage guns, religious paintings, and my grandmother’s doll collection while my house is on the market?

If you hope to get the highest prices and sell your home in the shortest length of time, remove as many of these things as possible so the widest range of buyers walking through there will not be distracted. It’s a great idea to pack them up early and have them waiting to grace the interior of your next home.

Four Reasons To Buy A Home

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.0% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 6.7% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year

mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year. An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage

There are some renters who have not yet purchased a home because they are

uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either your’s or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.