Is now a good time to buy a new home?
That's a big question and the answer is absolutely yes, for a whole host of reasons.
For starters, interest rates are expected to rise, and although we already expected interest rates to rise, as crazy as this seems, rates remain at historic lows.
Rental rates are also rising. However in spite of that, home prices are going up only moderately,
So the combination of these three factors: low rates, low home prices and rising rents – makes this a great time to buy.
Guidelines have also eased right now and though people have the misconception that things have tightened up, actually things have loosened up a little bit. As an example, on an FHA loan, many lenders are now able to go to a lower credit score of 580, so you don't necessarily need perfect credit to buy. You also don’t need a lot of cash to buy a home.
It’s zero down for veterans and also for reservists. Many reservists have come back and might now even know that they are eligible for a zero down mortgage.
Boomerang buyers are also back. They had a home, they had to sell their home as a short sale or maybe even went into foreclosure or bankruptcy. There are programs that will now allow many of these folks to obtain a mortgage with attractive rates and very little money down.
This is also the right time for Millennials to be buying a home. We have low rates we have moderate home prices and we have rent rising. So now is the optimal time for Millennials and really for almost anybody to start thinking about buying a home.
So our advice in terms of starting a home search is to actually meet with a lender
and get yourself pre-approved. There are so many programs available today so it's always good to meet with the lender and know what your comfort levels are and to know which programs are available so when you go into the marketplace you already have a loan secured and ready to go – with no surprises.