It is (Almost) Never a Bad Time to Buy a Home
We’re always trying to educate you as much as possible, especially in this market that’s ever-changing. Learning is like a roller coaster. Why is it rarely the wrong time to buy a home? There are lots of good reasons and Holly came across a nice little piece of those updates from some of your preferred lenders. Steve, because we want to thank you from USA mortgage, you sent this great tool, and it had some tremendous valid points. We’ve added a couple that we feel are essential in the new home industry versus the used home industry.
So today’s quote inflation is creating a better outlook for buyers in the future. The reason is it’s leveling our market out, it’s reducing the competition, and it’s allowing more fair market value pricing to be put forward towards the buyers that are out there consuming their time looking for a new home. Whether it be used or new.
That’s why it’s different in new home construction because when you write a contract here, you know what the pricing is and you know there’s no negotiating. We do have some special incentives here and there, though. Still, the price is what the price is, so you build a price that you’re comfortable with.
The inflation supposedly being created today will level itself out, and we’re all anticipating that. We’re even hearing from a couple of our lenders on the given day. I talked to two this week, and they say they’re already seeing it go down now. I don’t know that, I haven’t looked at anything, but that is what I’ve been told. I’ve even been told by two different lenders this week, so we were also excited about that. Another important topic to touch on why it’s not a wrong time now is because you can probably foresee yourself being happier right now. There are so many uncertainties in the world that nobody knows where things are going.
Just having that sense of home and safety and not being in a rental is amazing. You know prices of homes are going up, so guess what’s going to happen to your rental rate? It’s going to go up once you lock into a mortgage, the only thing that is going to fluctuate are your taxes and possibly your insurance, so your principal and interest payments are going to stay the same throughout the whole calendar of the loan. Once you get that sense of security from having a structured loan that is established for years, whatever you embark on is just going to give you that sense of calmness. You’re going to know what those numbers are going to be. You’re going to be able to budget by.
Tax Benefits for Home Owners
Think of all the tax benefits that you have when you have homeownership. If you don’t have a home that you can write off, you need to talk with your tax provider to get the definite things that can and can’t be written off. Still, when you own a home, there are so many benefits that come with being able to write things off and that sort of thing so that money can pay down credit cards that you’re getting back. You may be paying a monthly mortgage every single month, but the tax benefits come in January, February, or March, whatever time frame you’re within, you take that money, buy down your credit cards, and then your numbers aren’t so upside down.
So again, we think many of our first-time buyers don’t realize that so well, and we hear a lot like, “I’m scared because the rates are rising and material costs are rising.” You’re correct, material costs going up like this is the new normal. It’s not going to go down if lumber prices go down. Something else is going to go up. It’s just the nature of the industry that we’re in right now. Everyone that we’ve done with the research and read about, nobody foresees that changing, so the new numbers are your new bar. It’s your new average, so material cost is not going to go down because people bought it at peak market value, so they’ve got to recoup that so nobody’s in the business to give it away.
What is going to change, however, is the longer you wait, the higher the interest rate could not be.
Purchase the Home at the Rate That You’re Comfortable With
The best thing for you to do is to lock in and buy a home as early as possible and as quickly as possible. Purchase the home at the rate that you’re comfortable with, the home that you’re satisfied with, and stay in contact with your preferred lender. Let them keep you at the forefront of what’s changing and what could happen. Get yourself two points ahead of what the current interest rate is just to see what your worst-case scenario is. If you’re building a house you do have a slight risk of the rates moving but if you stay in contact with your lender, they’re going to help you out throughout the process.
Please do yourself a favor, buy a home for yourself, and start reaping those benefits of homeownership because you deserve it. You work hard for a reason and invest in yourself. I hope you guys have a great rest of your day and hopefully we are giving you some helpful information. Suppose you have any other questions, feel free to send us a direct message or call us. We’d be happy to answer any of your questions you might have or put you in line with one of our outstanding preferred lenders that could. If we can’t answer, they certainly can.