Ok, so you hear REALTORs and lenders advertising all the time about how you should “Buy Now”. Buying a home may be the largest financial decision you make, so I think you should have some solid reasons why you, a friend, or a family member should take a VERY close look at why now is such a good time.
For the first time homebuyer, the $8000 tax credit is due to expire on Nov 30th. There’s no guarantee this will be continued. You would need to close by Nov 30th in order to qualify for this free money. This is still possible, but you need to get under contract with your new home ASAP! Lenders are taking longer to close transactions, so the typical 30 day close may now take about 45 days or longer. If you qualify, the New Mexico Mortgage Finance Authority has programs to limit your down payment. Rio Rancho also has a grant program for qualified buyers. Call me for more information or go to MFA’s website at http://www.housingnm.org/
Prices are LOW! Why wait to buy a home in a seller’s market. It seems simple enough. Don’t miss the boat when prices start rising. Pending Homes for sale in Rio Rancho and Albuquerque have gone up 36% in the month of August compared to 2008 (based on data from the Southwest Multiple Listing Service). When the bank owned properties and short sales start to clear out, I expect prices to begin rising.
Interest Rates are LOW right now! I don’t think they will remain low. Here’s why. Recently, the Fed said they would begin rationing out the purchase of mortgage backed securities they have committed to through the first quarter of 2010. It appears they want to “wean” the market back to normal market conditions. What will this mean for the home buyer? It means mortgage rates are likely to go back up over 6%. When interest rates go up, waiting to buy will cost you.
With the above reasoning, if you’re in a position to buy, why are you waiting?
Need to speak to a mortgage lender in Albuquerque or Rio Rancho? I work with a team of lenders that will help you find the best deal.