The news is enough to scare anyone these days. We all hear the doom and gloom terms: recession, credit crisis, market free-fall. But what does it all mean and should it have an impact on whether we purchase our first home?
The answer is decidedly both yes and no. If you have been impacted directly by the ailing economy and your job is at risk, for example, you may want to think twice before diving into a major purchase such as a home. However, if you are fortunate enough to have a steady job, a nice nest egg and excellent credit then it may be time to consider purchasing your first home.
Low Interest Rates
There’s no doubt about it. Lenders have tightened their belts and only those individuals with the best of credit have a shot at getting approved for a mortgage. However, if you’ve paid your dues and have a sparkling credit history, then you are one of the lucky few whom can take advantage of the near-historic low interest rates.
Nice Inventory of Homes
The sour housing market may also be in your favor, as there is a nice inventory of Coppell homes on the market with reasonable price tags. We are definitely still in the middle of a buyer’s market, which means that there is likely a nice supply of homeowners looking to unload their properties.
Down Payment Concerns
Finally, it may be the right time to purchase your first home if you have saved a considerable amount of money for a down payment. Most lenders require at least 20 percent down, so if you haven’t secured that much money, then it may not be the time to dive into your first home purchase.
Buying your first home is a very personal decision. You must take your own, individual circumstances into consideration before making this major purchase. There are many incentives for new homeowners these days, such as low interest rates and tax rebates, so it pays to educate yourself on both the positive and negative aspects about purchasing your first home.