No doubt, we are living in stressful times. Many are out of work as non-essential businesses are closed for the time being. What could this mean for the economy and the housing market? Should you continue your house search, or should you wait? Here at Handler Homes, we care about our fellow neighbors. That is why we want to share a few things with you that may help you to make the best decision for your circumstances.
Because it is nearly impossible to time the market, what is most important is that you review your personal circumstances and make an educated decision based on that. Taking note of the fact that mortgage rates just hit a 50-year low, the time may still be right to buy for many.
Ask Yourself, “What Do My Savings Look Like?”
Having enough saved for a decent down payment is always essential, especially so in an unstable economy. Experts recommend having your down payment, plus 4-6% more for closing costs, plus about six months of your living expenses saved in case of emergency.
Ask Yourself, “What Kind of Financing Do I Qualify For?”
Get pre-approved. Find a lender you are happy with and work with them to figure out what kind of house you can afford. Having a good credit score (generally around 640-740) will assist you in nabbing a manageable interest rate and good terms. If your financial health is still looking good after considering these things, it may be an ideal time for you to buy. Mortgage interest rates are historically low at about 3%.
Ask Yourself, “What Will Housing Prices Look Like During a Recession?”
Well, it depends. Housing prices may dip but it may not be as drastically as you might think. It depends largely on your local economy. So, take the health of your local economy into account. During previous recessions, larger cities felt the effects much sooner. Ultimately, if you have the financial stability to do so, it is always a good time to buy a home. The biggest mistake most people make is simply when they purchase homes beyond their financial means.
Ask Yourself, “Do I Really Want to Buy a Home?”
Even if you can swing buying a home, ask yourself if it is worth it to you. Owning a home will cut into other things you want to do, such as travel. On the other hand, to some, owning a home is what they dream of most. A place to truly call your own. To decorate how you like and to host friends and family for special events. Owning your own home can provide you with a strong sense of belonging. It is all about evaluating what matters most to you and what makes the most sense for you.
By Handler Homes 3-28-2020