When should I buy a home? Is now a good time? This is a question that we hear all the time from the buyers and homeowners wanting to change or downsize their home. Currently, all indications are that the bottom of Denver’s market was in June 2009. If you look at some of the examples below, you can see that waiting isn’t always the best answer.
Here are three scenarios for a typical home she called 100 Main St.:
- Buy the home for $300,000 in November 2010 with an interest rate of 4.1%: Monthly payment is $1,159.
- Buy the home for $294,600 in January 2011 with an interest rate of 4.7%: Monthly payment is $1,222.
- Buy the home for $276,924 in January 2012 with an interest rate of 5.1%: Monthly payment is $1,285.
Not only are interest rates rising, fees for loans are increasing as well. On March 1st, fees for Freddie Mac increased and April 4th is the date for an increase with Fannie Mae. Currently, some neighborhoods are experiencing multiple offer situations on well priced homes in upcoming neighborhoods. Multiple offers usually mean that the offers will go over the asking price.
Meeting with a lender, should be your first step in seeing what you qualify for. A lender can help you determine what loan program would be best for you. A lender can also help you fix credit issues that may be preventing you from getting the best interest rate in todays market.
If you do not have a lender currently, ask your Realtor for a few referrals and check them out online. Sometimes it helps to get an estimate of their fees to see what kind of cash you need to bring to closing. They can also help you determine if you qualify for down payment assistance programs.
If you are looking for a HUD home, check out this link.
There are also opportunities in other bank owned homes. Do your research with a qualified Realtor, and you could find the home of your dreams in todays market.