subject: First Time Home Buyers - 3 Signs That Say Buy! [print this page] First Time Home Buyers - 3 Signs That Say Buy!
First time home buyers looking for that flashing neon sign that tells them now is definitely the time to buy their first home, might as well be cruising the Strip in Las Vegas.
There are signs flashing everywhere that say "BUY!" or "are you nuts? DON'T BUY!".
So how can first time home buyers know for sure which direction guarantees the right decision?
As with any investment, there are no guarantees when it comes to investing in your first home, but you can make a smart decision if you can read the signs.
Recently the Wall Street Journal published an article about the "5 signs that say buy". While the WSJ gives their perspective from 30,000 feet, I thought a "closer to the earth" view would be of more help to first time home buyers.
Here are 3 signs for first time home buyers that say "BUY"
1. Jobs - Jobs are important, and nationwide statistics say that more people are finding employment, but what's more important to first time home buyers is THEIR J-O-B.
If you feel your job is secure and you'll be able to make the mortgage payment on your first home, then the combination of affordable homes and low interest rates are clearly a sign to "BUY".
What lenders look for in a loan application
2. What's going on in the rental market? - First time home buyers have choices: they can continue to rent (paying their landlord's mortgage) or start paying their own.
As the demand for more rental units increases (largely from displaced homeowners) we're experiencing an upward pressure on rents.
A recent article in CNNMoney predicted:
"Renters beware! Double digit rent hikes may be coming soon"
Renters in San Diego, according to CNNMoney, may soon be facing rent increases of 31% over the next few years.
"Hmmm? Rents are going up and mortgage payments going down, what kind of sign can that be?"
When the cost of renting exceeds the cost of owning, that's clearly a sign to BUY!.
3. Mortgage availability - The WSJ talks about the availability of mortgages like it's a commodity that's flying off the shelves and may not be available soon.
Fact is, there are TRILLIONS of dollars available to qualified first time home buyers.
More important to first time home buyers is the availability of first time home buyer programs and first time home buyer incentives.
3 Myths about first time home buyer programs and incentives
Some of these programs do have limited funding and are often available on a "first come, first served" basis.
But, when available, they provide the assistance to help thousands of first time home buyers become first time home owners.
As long as these funds are available for qualified first time home buyers, that's clearly a sign to BUY! Buying your first home is a very personal decision and you shouldn't make it until you are financially fit and emotionally committed to the lifestyle. If that's you, the signs definitely say BUY!
