We all know procrastination can be a killer. Everyone puts things off at times, but there are few instances where putting something off can hurt you as much as putting off purchasing a new home, especially right now, in 2018. There are a number of reasons you shouldn’t put off a new home purchase right now. Two of the strongest reasons are as follows:
First, interest rates are rising. The economy is heating up. And with strong economic growth comes the possibility of inflation. Inflation is generally good for a homeowner, because the price of their home, which is typically a highly leveraged asset, tends to rise in periods of strong economic growth. However, it can be a killer for someone trying to purchase a new home. This is due to the fact that not only are homes getting more expensive, but the interest rates of home mortgages tend to increase too. Putting the increase into dollars and cents, Freddie Mae expects mortgage rates to increase by around .75% by this time next year. And CoreLogic expects homes to appreciate by 4.3% in the same time. That means that if you wait a year to purchase a home that’s $250,000 today, that same home will cost you over $260,000 by next year. Your monthly mortgage payment will have increased by $179 per month! That’s right, you will be paying an extra $2144 per year, which equates to $64,282 more over the life of your mortgage. Why? Because you delayed your home purchase by only a year!
Secondly, a home is a powerful vehicle to help build personal wealth. A home has historically been an almost constant appreciating asset. And just by waiting that year, the combination of lost appreciation potential, combined with the lost equity you would have gained from your mortgage payments, mean you would be over $15,000 poorer than if you had purchased a home now.
And when you are ready to find your dream home, a professional realtor can help you make your dreams a reality. A good real estate agent is an expert. They will know every step of the home buying process, and will be intimately familiar with the area you are interested at buying a home in. He or she will help you throughout the entire process, from recommending a reputable lender to get you qualified, to scheduling your personal showings. They are experts at determining market values of homes, are familiar with real estate laws, can negotiate you the best deal and write all the necessary contracts to buy. Finally, they will be accompanying you to the closing table, where you will take
possession of your new home.
We are blessed to be in one of the best places to live in the entire United States. As a lifelong resident of Pueblo, I believe in Southern Colorado, as a place to live, and, as a place to invest in a home. As a licensed real estate professional, I strongly believe in the power of home ownership. Most people think buying a new home is out of their reach, especially since the real estate bubble burst in 2008. That is furthest from the truth. Real estate lending has relaxed since that period and we are seeing nearly everyone with a credit score of 640 getting qualified and many buying their home with as little as 3% down.
My name is Steven Lewis. I am a licensed real estate professional with Keller Williams, the world’s largest, and just recently name the #1 real estate company in the country, surpassing ReMax. Let me put my expertise regarding Southern Colorado and the local real estate market to work for you. As an agent with Keller Williams, I have access to everything the world’s #1 real estate company offers. I will guarantee you the best possible buying or selling experience available. As I tell my previous clients, “I’ll give you results that will “MOVE” you! That is my guarantee! So don’t delay. Now, is the best time to buy your new home.