Are you thinking of taking the leap to become a first-time homebuyer? Or have you been tempted to search for your next home? You are not the only one. However, with this particular climate, is it a good time to buy a home? That’s what we’re going to help answer.
There are differing theories on whether it’s a good time to
buy a house right now. Some think it’s an opportunity that you should take
advantage of; however, some think it’s time to scale back. It really comes down
to you and what’s right for your current situation. But we’ll give you the pros
and cons of buying a house during the coronavirus pandemic.
Why You Should Buy a Home Right Now
Less motivated buyers are taking a back seat right now. If
they weren’t truly in need of a move, they may decide to wait to avoid a change
in their funds, possible infection, etc. So first off, you’re probably looking at
a less competitive market right now, which means you may have more bargaining
leverage to obtain the house that you really want.
As we’re seeing in the media, the country is also
experiencing lower-than-average mortgage
rates. This may be an opportunity to get a much lower rate on your loan, in
turn keeping your monthly mortgage payments lower. This is a trend that may not
last, so buying a home right now might be a good idea for you.
There’s also a theory that when we bounce back from the
pandemic there will be some pent-up buyers and sellers flooding the market. This
may push housing prices higher with less bargaining leverage for buyers. So,
when considering buying now or later, be aware that the prices could shoot up
in the coming months.
Why You Shouldn’t Buy a Home Right Now
The first thing you must consider is your financial
situation. If you have any suspicion that you or anyone else that plans to
contribute to the mortgage may be out of a job soon, you may want to wait. Once
you sign those papers, you are obligated to pay the mortgage, property taxes,
and homeowners insurance associated with a home loan.
Others are theorizing that we may see a further dip in
prices after a few months of a regression in the economy. So, you may want to
wait to see if that dream home comes down into your price range. There’s no way
to really measure this, so it’s a bit of a risk to try to predict the market.
While the mortgage rates have gone down, the difficulty of
receiving a loan has gone up. Due to the unpredictability of the economy, banks
want to ensure that they won’t lose out when lending money. Therefore, buyers
may need a higher credit score and be required to have a larger down payment.
If you’re not financially ready for both of those things, you may need to wait.
Conclusion: To Buy a Home or Not to Buy a Home
As we said, it really comes down to you. Your situation needs
to be assessed to see if you and your family are in a safe place to make such a
big change. There are some positives to buying like potentially lower prices
and higher bargaining options. But those things could change at any minute. You
may not have the right credit score or the money for a down payment, which
means you may need to wait. So, think about where you are and how each of these
things would apply to your situation, and then make the best decision for you.
Whatever you do, make sure you get the best home insurance. We are still open and are giving free, contact-less quotes for new insurance policies. We care about you and your family, and we want to make sure you have the best insurance to keep you safe in a time of uncertainty. Feel free to contact us today to find out more. And good luck with your house hunting!