How do you know if its a great time to buy a home? When you have a great job? When your credit score is really high? When you have a family? Do you really want the new responsibility of owning a home?
Can you do some home repairs? What happens if that roof starts to leak? You going to be able to go up their and fix that leak or it could really destroy your house. You won’t be able to call that land lord and have him come over to fix all the problems. Its going to be up to you to figure out what to do.
Their will be a lot of items to think about when buying a house. Besides how you will come up with the money for the down payment. Now the lenders do require some sort of down payment. You will all so need to figure out what you going to be able to pay for a monthly mortgage payment. But as you can see their are a few things to figure out before you buy.
You want to figure out if you are going to be moving any time soon. If you are you very well might not be able to. It may be that the sales commission and closing cost for your purchase of the property will be added to your loan amount. The house value might not have increased enough to cover this cost.
If you did have to move. You would hope that your home has appropriated enough ion value. If it did appreciate enough you could have enough funds available to cover the closing cost and the sales commission. It will very well depend on the market at the time.
Hopefully you will be like most buyers. You will stay in the home for a least seven years. This make the home buying experience a lot more practical. Usually you would want to own rather than rent a home.
Don’t every try and predict what the market is going to do. This is just like gambling. usually the odds are all ways in the house favor. You can get into a lot of trouble trying to predict what the house is going to do in the future. that’s why you want to be in real estate for the long run.
After wards, they can look back and say, “The market began to turn in 1997,” like it did in some areas of California that had a tough market in the nineties. Before the turn, though, no one knows.
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