Does your family have another child on the way? Possibly you have an elderly parent with health concerns that needs to move in with you. Maybe you have inherited some money and wish to have a larger home and yard. There is an endless supply of reasons why a family may need to move up to a bigger or nicer home. Yet is now a good time to move up? Let's take a look at a few issues that will lead you to an answer.
Mortgage Rates: There is a huge difference between buying a home at the current 5 percent rate and buying one at 10 percent interest. The available rates change daily and how you qualify depends largely on your credit rating. The first order of business when considering interest rates is to contact a local mortgage lender to find out what rates would be available to you and on what loans. Keep in mind rates also vary depending on the type of loan for which you are applying. This past Friday marked a historical low for mortgages. Check that in your favor if your buying today.
Budget: Moving up to a bigger or nicer house may mean a bigger mortgage payment. Take an close look at your budget to see if this makes sense for your family. Also consider how buying a larger home will affect your utility payments, insurance and taxes. Also consider into the equation your annual interest write off on income taxes.
Current Market Conditions: To find out your own local market conditions, contact your local Realtor or us at www.HerbJohnson.com. Is the market favoring buyers or sellers? Are homes selling quickly? Are prices appreciating or falling? These are all important questions to answer. Of course the current environment favors buyers. Homes selling quickly and prices appreciating, not under current conditions.
Location: Many first properties are starter homes and as families grow their needs change. Neighborhoods change too, as residents age and jobs come and go. Take a moment to consider what area of town would be best for your family. Think about schools, commute times, and neighborhood amenities.