Planning To Buy A Home Next Year?

If you are planning to buy a home next year it’s time to get started.  Interest rates are at historically low levels and home prices are right down there with them.  This makes for an opportune time to buy a home, whether you are a first time homebuyer or are a “move up” homebuyer.

Some potential home buyers remain concerned about home prices falling further.  It is always possible that they could go a little lower, however there is no way to know where the exact bottom is until we have passed it and home prices are on there way back up.  Historically speaking home prices do go up and they do go down, it’s just cyclical.

Missing out on the lowest interest rates is more of a concern than fluctuating home prices.  Buying a $150,000 home with an FHA mortgage (3.5% down payment) at 4.00% interest rate gives you a monthly payment of $691.  Buying that same home after rates have increased by just .5% increases that monthly payment to $734.  The difference in the monthly payment amount is as if you had bought a $160,000 home with the 4.00% interest rate.

So, if you are going to buy a home next year the following steps should be taken starting now:

#1.  Get PreApproved For A Mortgage

Why now you ask?  Getting preapproved for your mortgage financing right now gives you the time to get all of your personal finances in order.  Your mortgage lender can help you with any credit report errors that might need to be corrected.  You will also have a very solid idea of your purchase price range so that you can take the next step and begin to look at homes for sale online.

#2.  Start Looking At Homes For Sale Online Right Now

Starting to look at homes listed for sale right now online will give you a great opportunity to check out different styles of homes and in general will give you  an idea of how much home you will be getting for your money.  You can search for both condos for sale and single family homes for sale and decide which one seems the best fit for you.

#3.  Select Your Area or Areas That You May Want To Search For Your New Home In

By looking at homes for sale online you can select some favorite homes and then you can set out to see if  you like the areas they are in.  Are the neighborhoods these homes are in a good fit for you?  Drive through them and different times of the day and on weekends.  Are you looking for an area or neighborhood with alot of children?  Drive the neighborhood looking for playsets in backyards and drive through these same neighborhoods at school bus times, that will show you how many kids there are.  Get details on the communities and schools that you are interested in.

#4.  Call A Realtor

Yes, it is now time to get to it.  It’s time to actually hire a Realtor to represent you as a buyer’s agent in the purchase of your home.  Select your agent carefully.  Selecting the right real estate agent can make the home buying process fun and hassle free.  Your agent should be experienced in the areas and price ranges that you are looking in.  You also need to be a good fit personally with your real estate agent, you are likely going to be spending a good deal of time with them for a while.

You are now on your way to buying your new home at today’s low interest rates and at these very low home prices.  If we can be of assistance to you in your home search please feel free to contact us using the form below or call us at 513-874-1830