Admit it, the economy is not getting any better and gas prices will never be $1 a gallon again(good times). However, there are advantages if you consider buying a home. We all know that this is a buyer’s market so you have the upper hand when buying a house with lower prices and in better neighborhoods. Buying is the easy part, you can check out the options with a mortgage interest calculator, but with a trouble economy, you must realize that your financial conditions can change at anytime. Do not buy unless you know for sure that your finances are stable.
One big factor that can change everything is your job, with people are getting laid off everywhere(see BOA)these days. Are you sure you want to buy that $800K dream house of yours? or do you want to play it safe and stay in a $700/month apartment? I don’t know about you but I would definitely choose the latter. You must always keep your debt ratios very low before you can even think about buying a home. If your fund gets short because you’re putting all your focus on paying the mortgage, you run the risk of not being able pay for other loans and obligations, this in turn will result in a poor credit. Be aware that if you really want to buy a house, you will have to buy one that you really love because if you find any imperfections with the house after buying. Well then, you will have a very hard time selling it back. You will need to buy to let mortgage calculator do the work for you.
There are a few positive sides to a down market and that is you get the option to choose as many houses as you want because there is no competition. Remember that this is a buyers market, there will always be more sellers so you don’t have to worry about not being able to find your dream house. Another important point to know is that interest rates will be very low and your monthly payments will be lower meaning you can spend less of your income towards housing expenses. However, don’t mistakenly think that lower monthly payment means you can buy a much more expensive house that you can’t even afford.
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