Consider These Questions Before Buying a Home

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home. 

Buying a home is a big decision, as you most likely know. And, oftentimes family and friends want to offer a lot of advice, some which can be great and some of which can be lacking. It’s very important to look at your needs, as well as the state of the current market, in order to make an educated decision.

So, with that being said, here are (3) questions we encourage you to consider:
1. What is My Motivation in Buying a Home?

The question above is truly the most important question to address. Studies show that it often times has nothing to do with finances, so put those aside momentarily. Revealed in a study, recently completed by the Joint Center for Housing Studies at Harvard University, are four key findings that show people’s purchase of a home has nothing to do with their finances:
Authority over the space
A strong education and kid-friendly
A safe place to raise a family
Greater area for a family to enjoy

Are you aware of the benefits that home-ownership will allow you- ones that don’t involve finances? The answer to this question alone should be one of your top considerations in deciding if now is the best time for you to buy.
2. Are Homes Increasing in Value?

A great resource for considering future home values is the Home Price Expectation Survey- it often times seems to have very reasonable assessments. It includes market analysis that projects where the market should be heading in the next five years.

Here is what the experts projected in the latest survey:
Home values will appreciate by 4% in 2015.
The cumulative appreciation will be 19.5% by 2018.
Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 11.2% by 2018.
3. How are Mortgage Rates Looking?

Another big consideration is what the rates look like… It’s easy to get fixated on the sales price of the home but the overall cost of the home is largely impacted by the rate in which it’s financed.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.

At the end of the day, take some time and reflect on these questions and see if the time for your family to buy is now. It truly can be a great thing for everyone!