With record low interest rates, why is anyone waiting to buy a home? Lots of factors contribute to this lack of buying frenzy and the linked article from Realtor® Magazine goes into more detail on these factors.
However, I think one of the major reasons that people are not massively going out and buying homes is the fact that no one has talked about or written about Home Ownership. With the Real Estate Market Bubble bursting in such a grand way, the next generation of home buyers are much more cautious of entering the market. I do not blame them. An artificial market was created and fed on itself to a point of gargantuan collapse.
Let’s explore the Responsibility of Owning a Home instead of the great deal that a consumer may or may not be missing out on right now.
When I bought my first home, I felt it was a rite of passage. My husband and I had money saved up in our bank account, we were extremely tired of the apartment life, and we thought that we were ready for the joys of home ownership.
Ha! Ready for home ownership? I don’t believe anyone is ready for the great responsibility of paying back a mortgage. I even forget that I live in THE single largest purchase that I have ever made. Making sure that we pay our mortgage on time is well, irrelevant, because our mortgage provider takes care of that with automatic withdrawals. However, budgeting, planning, and understanding our finances in such a way that we can keep paying that mortgage each month is vital.
Know your Financial Situation.
Blah, blah, blah. You may say. The first stop when you are ready to buy is not my office. It’s a great feeling when people want to start looking; but, it is not a great feeling when people want to buy and are unable to financially afford what they fall in love with. Your first stop should always be to a Loan Officer’s office. They can get you pre-approved and hopefully go over with you the price range you should be staying within for your new home. Know your price range that corresponds to a comfortable mortgage payment.
Knowing your financial situation is very important. This is the number one thing you need to understand to a T. If you understand your current situation, you will be able to accommodate for the unforeseen in the future. You can NEVER predict the future; but, you can surely be mindful of your current situation.
I can show you beautiful homes; but, I’m not going to have the most knowledge of what you can afford. YOU, the consumer, must be well aware of your financial situation.