There is a lot of comments by real estate agents that this is the time to buy but is that right for you? Really it all depends on your situation and whilst prices have dropped, and interest rates are at historic lows if you don't have some funds saved and a good credit score it is not the right time.
Even FHA loans require some money 3.5% as your share of the purchase and whilst you can ask for a sellers assist for closing costs not all sellers in this market can give it to you. So you do need some funds for closing costs, such as transfer tax, title insurance, recording of the deed and various other costs such as home insurance etc.
So don't make a mistake and move ahead to buy when it is not the right time for you, maybe living with parents for a while and saving up for a deposit on a home is a wise choice for you right now. If that is not an option maybe you need to find a cheap rental and start saving as much as you can so you can take advantage of this window of opportunity before it closes.
Prices probably will not rise dramatically for some time, and whilst the government keeps working to keep mortgages low the opportunity remains. So start taking action now to improve your situation, work at improving your credit score, get a copy of your credit report and check that it is accurate, if not write to the companies involved and get the mistakes corrected.
Make sure you feel comfortable with your job being secure.
What is good right now is the opportunity to have the government help you if you are a first time buyer with an $8,000 tax credit. This credit is available to all first time buyers which is defined as not owning a home in the last three years. If you are buying with someone neither of you can have owned a home. There is also a cut-off depending on how much you earn as well. But the time is right to buy if your credit is good, you are secure in your work and you are a first time buyer with access to the funds from government.
If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you, contact us or connect
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