Deciding to Buy

With mortgage rates as attractive as they’ve been lately, now is an excellent time to buy a home. Yes – it is considered a Seller’s Market and prices are on the high side. However, it is unlikely that prices overall will drop; in fact, they are predicted to continue to rise. Still, there are many other factors to consider:

• Personal Considerations
• Do you need a larger home because your family is growing?
• Are you retiring or down-sizing?
• Are you moving for work-related reasons?
• Are you emotionally prepared to leave your current home?
  
• Financial Considerations
  Do you have any credit problems? How much of a mortgage will you qualify for? Do you have enough cash for the down payment and closing expenses? Can you comfortably afford the mortgage payments, taxes and insurance?
  
  Buying (or selling) a home is an expensive process. Closing costs can amount to 4-8% of the sale price for both buyer and seller. Do you expect to own your new home long enough to recoup costs through appreciation?
  
• Investment Property
  Home ownership is an attractive investment over the long term. There are tax advantages, mortgage interest is deductible, and profits from the sale of a home are usually exempt from capital gains taxes.