“I am waiting for the market to bottom out.” This is the most common statement that I hear when consulting with potential buyers.
While it is always best to follow the old saying, “Buy Low, Sell High,” there are multiple variables to consider. First, we won’t know when the real estate market has hit the bottom until it starts to come back up. Second, if the housing market was to decrease by an additional five percent, and interest rates rose by two percent, your monthly mortgage payment would be higher than if you purchased today.
Purchasing now will also give you one more year of equity build up in your home as well as one more year of homeownership tax breaks.
While it is true that lending guidelines have tightened, since you actually have to be able to prove that you have income, assets and a good credit score, don’t let this discourage you. There are many great programs for first time home buyers. FHA’s maximum loan limit is $346,250 and only requires a 3.50 percent cash down payment. If you and the property you are purchasing qualify, you can even ask the seller to assist you with up to six percent of your closing costs and prepaids. Now is an excellent time to get into the market.
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails and Paths Premier Properties. He is also an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com.
