When it comes to the time to buy a home, the reasons that buyers choose to buy at any particular time are as varied as the number of buyers out there. Sometimes homeownership is called the best "accidental investment" that people make, as the reasons that people buy a home may not be for the wealth building ramifications that may be a by product of the purchase. When properly done, home ownership can lay the foundation of financial security in addition to the personal choice to own. There are many financial deciders that would support a decision to buy a home, including equity buildup, value appreciation, and tax benefits. In all scenarios, its best to base the decision to buy on facts, not fears.
The lack of substantial down payment, as well as a less-than-perfect credit score won't necessarily stop someone from making their first home purchase. If rent is being paid, very likely a home buying purchase would be possible. Speaking to a mortgage lender or bank to have an idea of what is affordable for any buyer is a good first step in the home buying process. There are many programs out there for first-time homebuyers, and a mortgage lender will be able to discuss options based on any specific situation or scenario. After getting those results, they can also let the buyer know the items that would need to be addressed in order for a purchase to take place in the future. Even if the response to buying wasn't what someone might be hoping for, "no" really might mean "not now", and an action plan would be able to be put together in order to purchase in the future.
A licensed real estate agent would then be able to discuss what the options are as far as what's available on the market today. Having realistic expectations based on a budget for location, number of bedrooms and bathrooms, improvements or updates needed, and other finishes should be considered in looking for that new home.
There is never a wrong time to buy the right home. In looking for a home it's important to buy based on whether or not a home is a good buy for the short term, and that you're able to afford it, and have the financial stability, for the long term. According to the National Association of Realtors, younger buyers tend to purchase older homes. NAR also shares that homebuyers tend to make a new purchase every 7 years. In addition, over the long-term real estate tends to appreciate in value.So, even if the home that you purchase now isn't that "dream home" that you're ultimately looking for, the best way to get closer to buying that ultimate dream home, is to buy your first home now.
Melissa Rolland is a licensed Connecticut realtor. She lives in Tolland, along with her husband Todd, a licensed broker. Together they manage the Rolland Realty Group at Keller Williams Realty. You can connect with them at www.RollandRealtyGroup.com