Buying a home now or any time depends on your circumstances. There are many plus’s and minus’s to purchasing in a market like we are presently in. On the positive side; interest rates are relatively low, home prices are stable of slightly down in our area, and the stock market doesn’t look nearly as attractive as it has in the past. On the negative side; loans are a little bit harder to get. The nothing down 100% financing loan has pretty much gone away. A loan today will require a good down payment as well as a good credit score to get approval. How much down depends on your credit score. While 5% or 10% down payments are adequate most of the time, I recommend that you try for 20%. With the 20% down you can avoid the private mortgage insurance (PMI) that may result from up to $100 a month; depending on the size of your loan, being added to your mortgage payment. If you are a first time home buyer there are several programs through FHA and Rural Development that can help you get into a home.

For most people a primary residence is a good investment. Historically homes have appreciated more than the inflation rate as well as providing some good tax incentives. Stocks and bonds are also historically a good investments too but they can swing wildly, as we have seen lately, you can loose a great deal of money in a very short period of time. Real estate, at least in this area, seems to remain more stable. A home may not appreciate rapidly at times but it also very seldom falls very far in value.

Talk to your favorite loan officer today to see how much home you can qualify for. Remember that you may qualify for more home than you should buy. Be wise in your choice and don’t buy more home than you can comfortably pay for. If you don’t know who to contact about financing, just call one of the local real estate offices in the area and request to speak with a Realtor®. He or she will be happy to recommend one or more financial institutions that they have been able to work with successfully in the past. After you have your financing arranged for, contact a Realtor® and they will guide you through the home purchasing process. Realtors® are professionally trained to help you get the most home for your investment dollar. He or she will be able to answer all your questions and show you several homes that will fit your needs and desires. They will help you all the way through the closing process and into you new home.

Paul Bowen