TO OWN OR NOT TO OWN?
For many, home ownership is a compelling dream. We look forward to the freedom and security of owning our own home and are more than willing to make the sacrifices required to achieve our goal. These include working hard and finding ways to save the funds we will need to make our first purchase.
However getting pre-approved, the lender may hold the rate for only 60 days. This means that if you purchase a home and the closing date is 70 days after you've been pre-approved, the lender may not honour the rate they gave you.
WHEN SHOULD YOU BUY?:
Much has been written about the 'right time' to enter the real estate market and become a home owner. This decision is especially challenging when the market seems to be changing. If housing prices are falling, people tell you to wait unitl the market 'bottoms out' before buying. When prices are increasing quickly, there's an urgency to buy now and avoid being left behind. Unfortunatley, even the so-called 'experts' can't predit accurately when a market will reach its peak or lowest point.
Think of your primary residence as a long-term investment. No matter when you buy in a market's cycle, home ownership will always be one of the best investment opportunities available to you. Rather than trying to 'out-guess' the market, your decision on timing should focus primarily on your current financial situation.
One easy way to evaluate your buying decision is to ask yourself, "If all else were equal, would I rather rent or own my home?" It's safe to say that most of us would opt for ownership. So, how do you make the choice financially? By thinking about where you'd like to be in the future.
ARE YOU READY TO BUY A HOME?
This checklist may help you decide:
- I'm ready to change my spending and lifestyle habits to support the additional costs of paying for and maintaining a home.
- I've work hard to earn a good credit rating and continue to use credit wisely. *I'm prepared to enter into a long term commitment for my family's security, both physically and financially.
- Pride of ownership is important to me and I would enjoy the chance to take care of my own home, inside and out.
- Your total income
- IF YOU CHECKED ALL OR MOST OF THESE BOXES, YOU MAY BE READY TO BUY A HOME.
