Is Now the Right Time for You to Purchase a Columbus Home?
Over the last few years, the entire country saw one of the largest housing market booms ever. Interest rates dropping lower than we could imagine brought many buyers rushing into the housing market in Columbus and all across the country in hopes of taking advantage of buying a home at a much lesser cost. This was in conjunction with the ability to work remotely while businesses were not conducting work in person and it flooded the market with interested homebuyers.
In those few short years, we have seen quite the turnaround in mortgage interest rates, and as such, the market became challenging in a different way for hopeful Columbus homebuyers. Mortgage rates almost doubled from what they were in 2021. Currently, mortgage rates have dropped slightly again and brought an increase in homebuyer interest but they still remain high as compared to the last couple of years and some Columbus buyers are wondering if now is a good time for them to personally purchase a home.
Here are some ways to help Columbus buyers determine if they can afford to purchase a home right now
Look your finances over carefully
The first step in purchasing a home is to make sure you have extensive knowledge of the health of your personal finances and how they could fit into a potential Columbus home purchase. Start by making a list of all of your assets and your debt responsibilities to help you figure out your debt-to-income ratio it is a good idea.
If you have large amounts of outstanding debt focus on paying those down before talking with a mortgage professional. It is also good not to take out a loan on a large purchase right before you hope to purchase a home. The amount of money you have coming in versus how much you have going back out in required payments will make a huge impact on the mortgage you'll qualify for.
Don't look at one lone option and agree to the first one given
It is within a potential Columbus homebuyer's best interest to shop around for mortgage loans. It is advised that you look at at least three or four different mortgage loan offers to determine what would be best for you personally and financially. Sometimes this doesn't mean the lowest payment. The best way to determine what the best mortgage product for you is, is to work with a mortgage broker that can do the loan shopping for you.
Don't wait for or count on rates to get lower
Even mortgage rates don't seem ideal as compared to what they were just a short time ago there's no guarantee that they will continue to get any lower or that they will drop so much that it makes a huge difference. If you have the ability to afford and qualify for a good mortgage on a home you are then now is the time to purchase a home. There really is no such thing as perfect timing when it comes to purchasing a home. The perfect timing for you personally is when you are able to afford the home that will make your daily life more pleasant and help to build wealth over a long period of time.
Stick to the financial expert advice on expenditures
A majority of real estate and financial experts advise that you do not take on home expenses that are above 1/3 of your gross income. Some financial experts will even advise that you do not make your overall housing expenses more than 1/4 of your income. This allows you to live comfortably and pay off your other commitments while also being able to purchase fun items like extra clothing, going out to eat, and saving for vacations. You do not want to tie up all of your income into bills because this can create a very hard lifestyle that could ultimately lead to a depressive state.
If you are personally ready to purchase a Columbus home, now is a great time to do so as buyers have a little more leveraging power in a home purchase than they did when the competition was stiff and mortgage rates were unbelievably low.
For more information on purchasing real estate in Columbus and surrounding areas please contact us anytime.