By Delta Jones-Walker
As Charles Dickens so eloquently wrote, “It was the best of times, it was the worst of times.” As we continue to grapple with the seemingly endless pandemic, searching for the silver linings can prove beneficial. Take mortgage rates for example — they’re pacing for a record low nearing 2.88%.
According to our survey of major housing authorities including Fannie Mae, Freddie Mac, and the Mortgage Bankers Association, the 30-year fixed rate mortgage will average around 3.03% through 2021. So what does all of this mean? Those in the market for buying a home need to get moving!
How do you know if you are ready to buy a home?
Home ownership has nothing to do with age but rather where you are mentally and financially in life. Making a checklist can be very helpful, and make sure to include the following questions:
- Is your financial house in order?
- Have you saved enough for a down payment equivalent to the price range of the home you want to purchase?
- Will you be able to make the monthly mortgage payments without struggling?
- Is your credit score in a decent range?
- Are you prepared for the emergency fixes that come with home ownership?
- Have you consulted a financial advisor?
Window shopping for a home can be such a blast. We dream of the finest location and amenities. Then reality sets in. How much is all of this really going to cost? The checklist of questions above help frame a realistic conversation to have with your financial advisor.
Home ownership requires commitment, and one must be ready to settle down. Whether the mortgage is 15 or 30 years, it’s a significant period of time and all parties involved should be prepared to be “all in.” The additional silver lining is the low mortgage rate is predicted to persist for a while so you have some time to get ready for home ownership.
When selecting a financial advisor to start the process, be sure to team up with someone who wants to see you win, not someone who views you as a mere commission. Be honest about your financial situation while being prepared to commit to the financial plan that you will develop together. Lastly, stay the course on saving and improving your credit score. These are both areas where a great financial advisor can offer assistance.
Happy house hunting!
At Atled Financial, we are always looking for ways for you to improve your bottom-line. To schedule a complimentary consultation or a presentation to your group or organization, call 219-513-3710 or email email@example.com and mention this column. Topic ideas for this column are welcome!
*Securities and advisory services offered through Woodbury Financial Services, Inc., member FINRA/SIPC. Insurance services offered through Atled Financial Group 717 B Main Street, Schererville, IN 46375 which is not affiliated with Woodbury Financial.