Is it the right time to buy? For any prospective home buyer, this is a huge question. It is the question. Timing impacts virtually every aspect of the process and can mean you get an exceptional deal – or not! We know it’s a vital question… so what is the answer? One word: yes. It’s time. Here’s why:
5 Reasons to Buy a Home in Today’s Market
1. Interest Rates Are Low… Very Low
Interest rates are at near-historic lows, and indications are that they will not fall any lower. There is typically a “floor” of about 3% – and we’ve fallen through with an average of about 2.88% currently. Don’t count on it dipping even lower. Interest rates have a huge impact on the amount you will pay over time, making now a great time to buy.
2. Renting Is Becoming More Expensive Than Owning
One of the biggest reasons to buy a home in today’s market is that it can be less expensive than renting. Historically, this has not always been the case, but now, your mortgage payment may well be less than your rent.
Ok, but what about those extra costs that always seem to come with owning a home? The utilities, for example, can run your hundreds of dollars over and above your mortgage. The good news is that you invest in a high-performance, energy-efficient home, you will see savings each and every month.
Further, you can deduct mortgage interest on your federal taxes. This can significantly reduce your taxable income by thousands of dollars.
3. You Start Building Equity Now
Why wait? We know it’s a cliche: you can invest in your own future – or your landlord’s. Well, it’s true! The sooner you buy, the sooner you can begin building equity. When you stay in it for a reasonable period of time, you can see your home’s value grow. This is especially true in a market like South Florida: this is a desirable area for residents and for those wishing to relocate. Buying your home now positions you for a stronger future.
4. You May Be Spending A Lot More Time at Home
We can’t ignore the elephant in the room: the Coronavirus pandemic. This novel virus has thrown the world into a tailspin and sent millions of employees home. For many, remote work has become the norm – and many are staying put for now. While we faced major adjustments, a lot of us found that working from home was great for productivity and a better work-life balance. Plus: pajamas.
Others are spending more time at home because social gatherings, eating out, and other pastimes are either prohibited or just too risky.
In either case, you want your home to be as comfortable as possible and as conducive as possible for living and working.
5. It’s Your Dream
Maybe you just don’t want to wait any longer. Maybe it’s been your dream to own a home for years, and you’re ready mentally and financially to make it happen. If you’re in a stable place in your life, want to move in with a partner, start a family, or take care of elderly relatives, and have a secure income, now may be the perfect time to bring this dream to fruition.
Today’s Home Buying Tips
Timing is important, and to make sure you are ready to move, we have today’s home buying tips you need to know:
1. Get Your Financial Life In Order
If you have not accessed your credit report in a while, do it now. You can get one free from each of the major credit bureaus – TransUnion, Experian, and Equifax – each year. Just go here. Are there outstanding debts you can clear? Are there inaccuracies you can contest? Doing so will raise your credit score and help you get more favorable mortgage terms from lenders.
2. Make Sure You Have Your Down Payment and Closing Costs Covered
In years past, you could get away with a 5-10% down payment. Today, you should really have the full 20% to satisfy lenders. Also, factor in closing costs, which are typically 2 – 6% of the loan amount.
3. Weave That Safety Net
You don’t want to enter into a situation where you’ve scrimped and saved for the down payment and closing but forgot about the refrigerator that needs replacing or the HVAC system that needs servicing. Make sure you have some savings to cover the costs you will run into as you enter life as a homeowner.
4. Comparison Shop for Lenders
We comparison shop for everything from cars to sneakers. Your mortgage is no different. Look into different lenders and determine who can give you the most favorable rates. (We recommend a fixed-rate mortgage; variable or adjustable rates can be too risky.)
5. Buy Smart
If you are ready to buy a home, buy the right home. When you opt for a high performance, energy-efficient home that is built to accommodate your needs – now and in the future – you will start seeing a return on your investment far sooner.
Ready? There are many reasons to buy a home in today’s market but you need to determine if it’s the right time for you. Contact Synergy Homes; our expert team will answer all your questions and help you take the next steps towards your dream of homeownership.
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