People, we are living in an incredible economic time. Interest rates for obtaining mortgages are at record lows. In addition, the prices of homes are also historically low. If you can afford to pay around $1,200.00 t0 $1,600.00 a month on a steady basis and feel your job is relatively secure, then it makes a lot of sense to buy now.
I remember I purchased my first home in 1991 for $104,000.00 and had a mortgage at 9, yes 9%. I also remember my parents mortgage was at 4% when they took it out in the 1960s.
Home ownership offers a great sense of stability to your family. It gives you a big sense of accomplishment and pride. It gives your kids, or the children you may have, the room to run and be noisy without worrying about common walls. Owning a home has always been an American Dream. There are also great financial advantages to owning (check with your accountant or tax guy).
If you are interested in buying a home, you should talk to an attorney FIRST, even before you contact a Realtor. Realtors are, to a large extent, commissioned salesmen with little true legal education. They can NOT give legal advice. Many of the forms Realtors want you to sign on the front end need to be discussed with an attorney first. As an example, most Realtors will want you to sign an “EXCLUSIVE” CONTRACT. This means, they can hold you to fees and commissions even if you find a home on your own. Furthermore, purchase agreements can be modified to give a buyer better protection. This is something attorneys need to do.
Realtors are the best at finding you a home and figuring out what the fair value may be. But, they are not attorneys.
Rich Hechter & Associates has been helping buyers and sellers of real estate since 1988. Give us a call. We are glad to give you our thoughts and advice when it comes to home buying.