If you want to buy a house you have to let go of fear. A lot of people ask, “Should I wait to buy a house?” Now, if you’re just nervous about it that’s what you have to let go of. There are a lot of great reasons to buy a house. In a lot of areas, mortgages are cheaper than rent. And you get a lot more for it. What’s important to know about fear is that fear is really an acronym for “false evidence appearing real”. Replace false evidence appearing real with knowledge. Is 2020 a good time to buy a house? Look at the stats. Check out the market. Let’s get a little more in depth on reasoning when it comes to buying a home.
One of the first things people mention as a reason to not buy a house is their student loan debt. Many of us have heard of student loans being an acceptable form of debt. And it is! Student loans are a good thing for your credit rating so long as you make payments on time. These are usually long term loans so it will give you quite a boost if you’re being responsible about it. “Should I wait to buy a house because of my student loan debt?” No, absolutely not. Many loan officers will work with you regardless of the amount of student loans you have out. You can also consolidate them or find other loan repayment options. 2020 is a good time to buy a house so don’t worry about your outstanding education loans.
Because the housing market has its ups and downs, we like to watch it closely. Your real estate agent will help determine a good time to buy. It doesn’t cost anything to get an agent, by the way. Watch the market yourself, though. There are tons of resources online for keeping up to date on the housing market. Are multiple bids going on in the market? If it’s a really strong seller’s market, of course, that’s happening. If it’s a really strong buyer’s market then the sellers are going to be wishing for offers. And in a stabilized market negotiations are a little bit easier. Both the buyer and seller have equal pull. The best reason to buy a house is because you want a home. And yeah, maybe be cautious about it in a seller’s market. But don’t let that stop you. The housing market changes a little everyday.
As the housing market gets more expensive, so do rentals. Your friends who rent may be paying a similar amount to another person’s mortgage but have way less space. That can motivate anyone to want to buy a house instead of renting, right? But it can also make people nervous because it could be a housing bubble. Prices start getting outrageous all over the board and blogs start talking about a crash. Once the housing market crashes, the prices of homes and rentals plummet hard. One dollar is not always worth one dollar. It simply depends on what you can get for that dollar. The problem is that if you wait too long, prices get higher and higher. There is no crash. And now you’re priced out of buying a home until further notice, basically.
“There’s a real person selling the house you want to buy…”
Let me let you in on a little secret… The person selling a house, in your price range of course, most likely bought it for less than they’re asking. They need to make a profit, right? So, this person originally got approved for less of a loan than you got approved for. And they may have even been in a similar spot that you are in now. Being a little worried about the market. Talk to them! Let them know what you’re thinking and what your concerns are. Ask their own experience – most people love talking about it. They can’t really hide anything from you as inspectors on both sides are looking for problems. They have to disclose problems with the house so just be real with them. I know so many people that have maintained relationships with the person they bought their home from. Let’s share our stories.
Another thing to think about is bad advice. Like I said, people love to share their experiences but let’s make sure it’s relevant. If grandma and grandpa say that they bought a home in 1945 for 10k… Well, that certainly isn’t relevant to the current housing market or economical struggles today. If they’ve stayed in that home this whole time, congrats to them – their investment has grown tremendously! But that doesn’t help you here and now. If a friend tries to make you worried about the housing market, in any way, ask where they got their information. “Oh, I read an article on the internet from…” And they name a random website… Well, that’s not good advice. Trust your agent. Do your own research from reputable sources. Popular sites that specialize in real estate like this one.
Preparation is Key
The bottom line is that you need to buy a house when you’re ready to buy a house. It can be said that no one is ever really ready for their first home purchase. There will always be doubts but there should be a lot of exciting moments as well. The best thing you can do for yourself is be informed. What’s the market like now and what’s it expected to be. What does growth in your community of choice look like? Check out interest rates, where they were, and where they’re headed. Get good advice and be as prepared as possible.
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