Three Great Reasons to Buy a Home Today

Three Great Reasons to Buy a Home Today

The forecast for the 2018 housing market suggests there are a number of reasons to buy a home today.  If you have been thinking of buying a home today but just can’t find the necessary motivation, then you need to consider these issues.

Increasing Home Prices

Home prices have been increasing in the Lansing area for the last couple of years.  Each year you wait to buy a home, you lose buying power.  That house that you have been thinking of buying will cost you more money the longer you wait.  What you can buy today for $750 per month will most likely be much higher by the end of the year 2018.    A $100,000 house will cost $115,762 in 3 years with only 5% yearly appreciation.

Increasing Interest Rates

Most financial experts are expecting interest rates to continue to increase for 2018.  Rising interest rates hurt potential buyers by making the monthly payments increase even if the home values don’t and it hurts buyers because many home owners will not put their homes up for sale knowing that they will also have to buy another home with the higher interest rates.  So, higher interest rates can really hurt in two different ways.

One of the biggest reasons to buy a home today: Missed equity

When house prices are on the rise, you build equity.  When you don’t own a home, you miss the opportunity to build equity.  Think of it as a savings account.  You can’t earn interest if you don’t open an account and deposit money into the account.

Remember that $100,000 house mentioned above?

Well, that $15,762 could be yours in 3 years if you decide to buy a home today instead of waiting 3 years from now to buy.

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Make Yourself Wealthy by Buying a Home

Make Yourself Wealthy

Why do the rich buy real estate?  Because it can make them wealthy!  You can make yourself wealthy by buying a home too!  The question that every renter needs to ask themselves is; “Who is getting rich off my monthly payments?”.  If you are renting, it’s the landlord who’s making the money.  If you own a home and are making payments to the bank, then you are the one making money.

Unless you are living with parents or friends for free, someone is making money off your housing situation.  Why can’t it be you?  Mortgage rates are still historically low and there are even some government financing options that can lower the down payment amount you will need to purchase a home.  You might not even need any money for a down payment!

Great Advice

I was told a long time ago, you don’t get rich off the money you make working 8 to 5 everyday, you get rich off what you do with the money you make working 8 to 5 every day.

Make Yourself Wealthy by Buying a Home

Step 1 is to buy a primary home.   This is the home you will live in.

Step 2 would be to buy another home and use it as a rental.  But that is a story for another day!

When you purchase a house, you should work with an experienced real estate professional to make sure you buy in an area where home values are trending up.  This way you will be building equity in your home at maximum rates.  So, in 5 years, the value of your home should be worth much more than you paid for it.

Bottom Line:  Now might be the time to start making yourself wealthy and stop making someone else wealthy.

Contact Jim About Buying a House

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Misconceptions About Buying a House That Might Be Holding You Back

Misconceptions About Buying a House

Often times, at open houses, I hear people express misconceptions about buying a house for the first time, I hear them say they, “We’re just looking and dreaming for now because we don’t qualify for a home mortgage due to our credit score” or because they haven’t saved enough for a down payment.

The Down Payment

When I ask people how much they think they need for a down payment, most will answer 20%. And, that was true many years ago. Now, we have several options available to qualifying buyers where the down payment can be as low as 3% or even no money down in some instances.

The Credit Score

The other big hurdle stopping people from trying to buy a house revolves around credit scores. Before the housing crash in 2006, getting qualified for a home was very easy, then the lenders tightened credit to only those with seemingly perfect credit. Now that the crash is over and the housing markets are more stable, banks are starting to become more relaxed again and are giving out loans to those with lower credit scores than they were a few years ago. It’s still not like it was in 2005, I think the banks learned their lessons, but it is much easier than it was not too long ago. Some of the options available can go as low as 550. But, if your score is below 550, keep checking with a lender because this figure seems to be going down on a regular basis.

Misconceptions About Buying a House in the Lansing Area

I know in the Lansing area and surrounding communities the inventory or number of homes on the market is much lower than it has been in years past. It’s really important you work with an agent that is searching everyday for homes for you. When a home hits the market that meets the criteria you have, you need to know about it the same day and be ready to make a decision right away. It’s a really competitive market right now but you can still find what you are looking for if you have the right help.

If you would like to know more specifics about down payments or qualifying credit scores, please feel free to contact me….

Contact Jim About Buying a House

Download Our Buyer’s Guide