Is now the right time to buy?

By Joel Persinger
YourRealEstateDude.com

I’ve been asked the age old “timing” question over and over again for many years. Lately, the question has been, “Is now the right time to buy.” The general answer is quite simply, “Yes.” However, there are some specific things that buyers should consider before getting started. Here is a short list:

How much money can you spent? This gets into the “B” word that nobody likes. In order to set yourself up for success, you must have a budget. If you don’t have one, get one. If you don’t know how to put together a budget, I strongly suggest that you take a class on budgeting and have a working, functional family budget before you start house shopping.

What kind of loan should you get? Lending is as individual as clothing. One size does not fit all. Each loan must be tailored to the particular needs of the borrower. Therefore, the first consideration is not the loan, but the skill, experience and integrity of the Loan Officer and the lending company. If you use a Loan Officer who is lacking in any of these areas, you may find yourself getting a loan which does not properly fit your needs.

Once you have found a good Loan Officer, you should explore the various loan products that are available to you based upon your credit score, down payment amount, debt to income ratio and other factors. Then you can select a loan which will help you accomplish your goal without putting you at risk of losing everything a few months or years down the road.

What type of property should be your focus? First, you should consider my grandfather’s old rule, “Buy a home that you can own, not a house that will end up owning you.” If buying your dream home is going to leave you with more month than money, put your dream back in your pocket and buy a home that you can afford. If buying that dream home will require you to get a crazy, lunatic, risky loan, then STOP! Some things are best not forced. Remember, it is far better to be content in a small house, than to be miserable in a big one.

Having figured out what you can actually own, you should decide what kinds of homes will be easier for you to buy. In this market, most of the homes that are for sale are either bank owned properties or pre-foreclosure properties (short sales). Bank owned properties will generally close escrow sooner and be less hassle to buy. However, they often have multiple offers on them as a result. Short sales are more difficult to buy and require much more patience.

Either way, the same is true about Realtors as is about lenders. If you start off by selecting the right Realtor, your buying experience will go much more smoothly. In this market, that means hiring a FULL TIME, experienced Realtor who understands the buying process as it applies to a foreclosure marketplace. Such a Realtor must be professional in word and deed and have extraordinary patience.

So, getting back to the question at hand, the answer is, “Yes.” It is the right time to buy. However, in order to succeed, you must first understand your own finances. Then you must put together a team of professionals who can guide you through the process. And finally, you MUST control your own emotions and desires. A very wise man once prayed, “Lord, give me what I need and not just what I want.” If you take this approach, house hunting will be a great experience!