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Is NOW Really the Best Time to Buy a Home?

There are many positive reasons (low interest rates and prices) to buy a home right now and one huge one ($8,000 tax credit) that will go away soon!  However, as with any purchase, these positive factors and incentives only matter if it is the right time for you to buy.  So let’s take a look at what makes it the right time for you. 

First, I’d like to point out that  marital status and gender are NOT indicators of the right time to buy a home.  Did you know that the largest growing demographic for home ownership is single women?  A home is a sound investment whether you are single, married, female, male, childless or have a big family!  The question of homeownership being right for you should instead be based on the following:  financial ability, staying in town, and  improvement of your life.

Probably the biggest indicator for home ownership is financial ability.  Financial ability actually encompasses many different subjects.

1)  Job.  Do you have a stable job?  Is it full time?  Have you been in the field for 2 years or did you go to school to learn the trade? 

2)  Credit.  Do you have good credit?  Have you paid all your bills on time?  Do you have any collections or judgments?  Do you have a bankruptcy, foreclosure or repossession?  Do you have any credit at all? 

3)  Savings.  Banks like to see that you have some “reserves”.   Savings accounts, 401Ks, mutual funds, retirement funds all count towards savings.  Savings provides you with a source of down payment and a “back up” for when times are tough. 

      What if I don’t have any savings? Fear not, there may still be a way.  If you have good credit and job stability, the bank will overlook savings.  NIFA has a program where y0u can borrow against your future $8,000 tax credit. All you need is $1000.00 of your own money!  Also, Hartland Homes pays your points and closing costs saving you approximately $2,400!!

Do you plan on moving in the next 2 years?  If you do, home ownership may not be right for you.  To take full advantage of home ownership, you really need to live in your home at least 3 years.  This allows for appreciation (prices in the market increase, thereby increasing what your home is worth).  When you sell your home, you can take that extra equity to move up or cash out!  If you move within a couple of years of purchasing, the home may not have appreciated enough to pay a real estate agent to sell your home and the other closing fees associated with selling your home.

Are you ready to improve your life?  Homeownership can improve your life in so many ways.  Here are just a few:

1)  Owning a home is a great investment.  It is a great way to improve your wealth and save money using the concept of leverage.  For example:  If you put $5,000 in any kind of savings, mutual fund or bond the $5,000 grows at x%.  When you invest $5,000 into a $120,000 home, it appreciates at x% based on the $120,000, so your money grows quicker!

2)  Freedom to live how you want!  You can have a backyard, a garage and a basement, decorate and hang pictures,  plant a garden, have a pet, install a play set…. whatever your heart desires. 

3) Lower Utility Bills!  Hartland Homes are built so energy efficient that they meet the Energy Star guidelines.  What that means to you is savings every month on your utility bills.

 

4)  Tax Break.  No one likes to pay Uncle Sam their hard earned money.  When you own a home you can deduct the interest paid on your mortgage and the property taxes paid, lowering the amount you owe the IRS!  Check with an accountant to see just how much you would save! 

For those of you who think that if you rent you don’t pay property taxes… think again.  When you pay rent you are paying the mortgage payment and taxes for the landlord.  Wouldn’t it be nice to get that deduction for yourself?

5)  Your wants, needs, dreams can come true!  Everybody needs something different:  more bedrooms, larger living space, a garage, a basement, an office, a play room, better schools, better neighborhood, closer to work….. I could go on forever, but you get the idea.  In the end, this is really why you buy a home.  Envision how your life would improve!  When you build a new home, you can select those items which you need or desire the most instead of settling for what is available!

 

If you think it may be the right time to own a home, give Hartland Homes a call.  Our new home specialists can walk you through every step of the process.  Not sure if your credit is good enough?  No problem, our specialists can help you with that too!

Want to know more about the positive reasons to buy a home now?  I will be posting another story on it soon.  Or just ask our new home specialists. 402-477-6668