Is Now a Good Time for First-Time Buyers to Make Their Move?
Today I’d like to shed some light on whether now is a good time to buy your first home.
Recently, I had a very eye-opening conversation with a local lender regarding the changes going on in our market right now. So as we enter this new market cycle, I thought now would be the perfect time to share some of what I learned from that conversation.
This update will be particularly useful for first-time homebuyers, because recent rate changes could very well disqualify them from being able to secure a home. Why? First-time homebuyers often need to stretch their borrowing potential to its maximum limit. When interest rates rise, as they recently have, their ability to afford a property can easily be nullified.
Thankfully, the market has responded to this. Many starter homes have been discounted by 6% to 9% to compensate for this rate change—making it possible for first-time homebuyers to re-qualify. However, this trend alone isn’t enough.
One of the most important steps any buyer must take when moving forward with a home purchase, whether it’s their first or otherwise, is to partner with a lender. An experienced lender will be able to guide you toward the loan product that will best suit your needs. This is essential, as the financing you use could mean the difference between whether or not you get the home you want.
Given these current circumstances, many people are wondering whether now is a good time to buy at all. The answer to this, though, is a little less simple than “yes” or “no.” If you plan on selling within just two or three years, do not buy right now. If you plan to hold onto the property for a few years, though, now is a great time to make a move and lock in a favorable interest rate while it’s still possible to do so.
So if you find a home you want, you can afford it, and you’re ready to hold onto it until the next “up” cycle, then you should definitely move forward with the purchase.
If you have any other questions, would like more information, or would like some additional personalized advice, please give us a call or send us an email. We look forward to hearing from you soon.