The current state of the real estate market is one of low inventory and higher mortgage rates than we have seen over the past several years. This has made buying a home more challenging for many individuals and families. However, regardless of the state of the real estate market, whether or not you should buy a home is really dependent on your personal financial situation.
One of the most important factors to consider when buying a home is your down payment. Do you have a proper down payment saved? Typically, a down payment of at least 20% of the purchase price is recommended to avoid private mortgage insurance (PMI) and to secure a better interest rate. Additionally, it is important to maintain a solid emergency fund to cover unexpected expenses such as home repairs or job loss.
Another important consideration is whether the monthly payment will be comfortable for you. This means factoring in all components of the payment, including the principal, interest, taxes, and insurance. It is important to have a clear understanding of your monthly budget and expenses to determine if you can afford the monthly mortgage payment.
While the current state of the real estate market may make it more challenging to find and buy a home, it is important to consider your personal financial situation before making a decision. A financial advisor can help you assess your financial health and provide guidance on whether buying a home is a good decision for you.
We recently hosted a Real Estate Market Update webinar with an expert panel of a real estate agent, mortgage lender, and appraiser. The webinar covered current trends in the market and provided valuable insights for anyone considering buying or selling a home.
We encourage you to watch the webinar to learn more about the state of the real estate market and how it may impact your decision to buy a home.