A Homebuyer's Trifecta

Timing, as they say, is everything.

There is only so much within our control so when it comes to making decisions, the best we can do is pay attention to outside factors, be purposeful in our thought process, and as a result be informed decision makers. This is especially true when making major decisions such as buying a new home. Timing really is everything whether it has to do with being prepared for a new addition to the family, downsizing after kids go off to college, or taking advantage of financial incentives that are available to lighten the load. Right now is a unique time to buy a home considering everything buyers have going for them.

One, the homebuyer tax credit offers up to $8K to first time homebuyers and up to $6500 to existing homeowners who have lived in their home for 5 of the last 8 years. Congress has approved this credit program for any homes that are under contract by April 30, 2010 (and closed by June 30, 2010) and we cannot expect it will be extended again. This site will give you some good info and more specifics.

Two, interest rates are as low as we've seen them in decades - currently hovering just under 5% for a 30-year fixed mortgage. We can only expect them to increase in the next year. This article from CNBC looks at the rate situation and what we might expect in 2010.

Three, home prices are at record lows. It's a buyers' market.

Of course, to take advantage of these types of incentives it has to be the right time for you and your family to make a change. If it is something you've been considering, now might be a good time to talk to your real estate or mortgage professional about what your options are and what the overall picture would look like if you were able to take advantage of everything that's out there right now.