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When Should I Buy A Home

The document discusses whether or not now is a good time to buy a home in Denver. It provides three scenarios showing that home prices in Denver have risen since 2010, with monthly payments increasing as well, as interest rates have also trended upward. Additionally, fees for home loans have begun increasing in recent months. The document recommends first speaking to a lender to determine what loan programs and amounts one qualifies for, and to address any credit issues, in order to get the best interest rate available currently. It also suggests working with a realtor to find well-priced homes and check for down payment assistance programs, noting that some neighborhoods now have multiple offers on homes.

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Nancy Mikoda
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15 views

When Should I Buy A Home

The document discusses whether or not now is a good time to buy a home in Denver. It provides three scenarios showing that home prices in Denver have risen since 2010, with monthly payments increasing as well, as interest rates have also trended upward. Additionally, fees for home loans have begun increasing in recent months. The document recommends first speaking to a lender to determine what loan programs and amounts one qualifies for, and to address any credit issues, in order to get the best interest rate available currently. It also suggests working with a realtor to find well-priced homes and check for down payment assistance programs, noting that some neighborhoods now have multiple offers on homes.

Uploaded by

Nancy Mikoda
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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When should I buy a home? Is now a good time? This is a question that we hear all the time from the
buyers and homeowners wanting to change or downsize their home. Currently, all indications are that
the bottom of Denverƞs market was in June 2009. If you look at some of the examples below, you can
see that waiting isnƞt always the best choice.

Alison Paoli of the Zillow blog offers three scenarios for a typical home she calls 100 Main St.:

› „uy the home for $300,000 in November 2010 with an interest rate of 4.1%: Monthly payment is
$1,159.
› „uy the home for $294,600 in January 2011 with an interest rate of 4.7%: Monthly payment is
$1,222.
› „uy the home for $276,924 in January 2012 with an interest rate of 5.1%: Monthly payment is
$1,285.

Not only are interest rates rising, fees for loans are increasing as well. On March 1st, fees for Freddie Mac
increased and April 4th is the date for an increase with Fannie Mae. Currently, some neighborhoods are
experiencing multiple offer situations on well priced homes in upcoming neighborhoods. Multiple offers
usually mean that the offers will go over the asking price.

Should I buy a home?

Meeting with a lender, should be your first step in seeing what you qualify for. A lender can help you
determine what loan program would be best for you. A lender can also help you fix credit issues that
may be preventing you from getting the best interest rate in todayƞs market.

If you do not have a lender currently, ask your Realtor for a few referrals and check them out online.
Sometimes it helps to get an estimate of their fees to see what kind of cash you need to bring to closing.
They can also help you determine if you qualify for down payment assistance programs.

There are also opportunities in other bank owned homes. Do your research with a qualified Realtor, and
you could find the home of your dreams in todayƞs market.

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