Is Now the Time to Buy a New Home?

We’ve asked this question before. But now, with the stimulus package being offered by the federal government for first time home buyers, home sales have been increasing on a regular basis. This, coupled with some of the lowest home prices in decades, and the competitive mortgage rates hovering around all-time lows, there has never been a better time to purchase that first home. Let’s also not forget that it is a buyers market, therefore anyone looking for a home has the advantage in negotiating a lower price with the home owners.

Before you consider purchasing a new home, it would be wise to investigate mortgage rates in order to find the one that is best for you. When you are researching the rates you will want to also look into the terms that are associated with the mortgage. There are some that require you to pay points, and almost all of them have closing costs associated with them. It is important to investigate every detail as the points and closing costs combined can end up costing you more then you can afford.

You’ll also want to look at the term length of your mortgage. You need to be sure it will fit into your future plans. One of the best places to start looking for your mortgage quotes is the bank you are currently working with.

Whether you are purchasing a new home or applying for a home equity line, it is always imperative that you have a homeowner insurance policy covering your property. Every bank who has a financial interest in your property will insist on proof of the existence of this policy and also require that they be listed as a loss payee on the policy. Of course, even if there were no financing involved at all, you would still be foolish to not have a homeowner insurance policy on your property.

Even if you are not taking out a loan for your property you will still want to make sure you have it insured. A house is one the largest investments you will have in your life, and wouldn’t you want to make sure that it is protected. There have been many homeowners who went bankrupt due to damage on their uninsured homes.

If you have questions about financing, or homeowner insurance, or any questions about the stimulus package and how it might help you get into a home, contact us, or use the comment link below to post your questions or comments.