If you’re thinking about buying a home, there’s probably lots of people giving you advice. And these people think they have your best interests at heart. But they may not be not aware of what your needs are and what is happening in the market right now.
Here are three questions that you should be asking yourself.
1. Why am I buying a home?
This is the most important question of all. Forget about finances. Why do you want to buy a home? A Recent survey said that Americans buy homes for the following reasons.
They think a good place to raise your children and to give them a good education.
It’s a place where you can be safe.
It will give you more room for you and your growing family.
And it is a space that you have control over.
2. Then there are financial reasons. And let’s talk about some financial reasons. Home prices have been going up for the past 5 plus years. Estimated they will keep going up at a similar pace. Which means that if you buy a home today for $300,000, you’ll need to spend $315,000 or more a year from now for the same house.
3. The next question is what is happening with the mortgage rates? As a buyer, you have to think about more than just the home price. The mortgage has a big impact upon your payment of course. And if interest rates go up just a little bit, spread over 30 years that can add up to a significant amount. So will mortgage rates be increasing? Probably so. After all, the Federal Reserve has already raised rates this year, and they stated that they will continue to raise rates. So most industry professionals are in agreement that interest rates will rise over the next few years.
Hopefully, answering these questions will help you decide if now is the right time for you to purchase a home.