Is Now the Right Time to Buy a Home?

With rates at historical lows, many people are looking to buy their first home. There are several factors to consider before making the leap to homeownership. Mortgage lender, Atlantic Home Mortgage, recommends doing your research on how much house you can afford before you start shopping. The following five factors will help you determine if now is the right time to buy your first home.

Getting on Track Financially

Purchasing a home is also an opportunity for your family to save money. When you buy or refinance your home, you’ll save money by eliminating mortgage insurance premiums. And if you’re buying or refinancing with an Atlantic Home Mortgage loan officer, you can eliminate certain origination fees upfront. Plus, take advantage of incentives like tax credits and first-time buyer programs that may be available in your area.

Deciding on the Location of Your Home

Location is key when it comes to real estate. The biggest consideration about location should be where you’re going to spend most of your time. You can own other homes, but you don’t want your primary residence (your home) to make you feel like you never see friends or family anymore. The location should also take into account other factors like schools, commuting distance, nightlife, and restaurants. If possible, try living in an area before buying; that way, you know exactly what that part of town has to offer.

Considering How Long You’ll Stay

Your best bet is probably a conventional loan if you’re going to live in your home for only a short period of time. Conventional loans typically have lower interest rates than FHA loans and have less paperwork. But if you plan on staying in your home long-term, an FHA loan may be right for you. Unlike conventional loans, which require private mortgage insurance for as long as you have one of these loans, FHA insures 100 percent of every loan it issues so long as borrowers meet certain requirements. That can save money - and headaches - in case something happens down the road.

Getting Pre-Approved for a Mortgage

Mortgage pre-approval is one of the biggest factors in knowing whether now is the right time to buy. You’ll learn if you can afford your home, how much down payment you should plan for, and what loan terms are available. A mortgage lender will look at your financial profile - income, credit score, debt - and give you an estimate of how much money they think you’ll be able to borrow.

You can be pre-approved for a mortgage without actually going through with buying a home right away. In fact, most people do just that. Once you have pre-approval in hand, you’ll be able to approach real estate agents and sellers with confidence that your offer will stand up in a competitive housing market.

Getting Tips From Experts

The right time for you to buy a home depends on many factors, including your age, how much cash you have in savings, and what your timeline is. For example, if you’re young and need lots of space but don’t have a lot of money saved up, now may not be the best time. By contrast, if you’ve been saving for retirement for years and have tons of cash in reserve, waiting longer may not make sense because rates will probably go up over time. In either case, though, it never hurts to talk with an expert - especially one who can help steer you in an unbiased direction based on your specific needs and goals.

Contact Us Today!

Whether you’re looking for an investment property or you’re planning on putting down roots and settling down, be sure to consider these five factors before buying your first home. With so much at stake, it pays to do your homework. Contact Atlantic Home Mortgage today and we’ll help you determine whether now is indeed a good time for you and your family.