The best mortgage rates remain near historic lows, and that's good news for home buyers who find properties at bargain-basement prices. But do low mortgage rates mean you should give up renting to become a home owner?
Best Mortgage Rates Are Near 5%
Mortgage rates are likely to remain low until the economy begins to show a strong recovery. Low rates are an incentive to buy a home, but consider a few things before jumping into a serious house hunt.
- Do you have enough down payment saved up? Many borrowers are still having a tough time getting approved for a mortgage because lenders remain cautious about extending credit. Having a large down payment -- and good credit -- can boost your chances of getting approved for a loan at the best mortgage rates.
- Are you ready to take on responsibility for maintenance and repairs after becoming a homeowner? Unless you have enough money to pay someone else to do all the chores that come with home ownership, you may want to rethink buying a home. You could also consider buying a condo to cut down on chores, such as cutting grass.
- Have you assembled a reputable and knowledgeable team of professionals to get you to closing? Take care when comparing mortgage brokers, attorneys, and home inspectors. It's important to find professionals who can be trusted, and who are going to work in your best interest.
- Are you planning to move soon? Maybe you've been job hunting and are considering relocating to another city or state. It's much easier to pick up and move as a renter than it is when you have to try and sell a home.
It could be that it's time to make that leap into home ownership. Just make sure you learn all you can about purchasing property to make the home buying process as smooth as possible.