When is the Best Time to Buy a House?
Buying a house is the American dream. However, it can be devastating to find out you spent too much money on your home. When is the best time to buy a house, and can you time it right? It's impossible to say exactly when the best time is, but here are some general tips from Advantage Property Ventures, L.P. that can help you with your decision.
Wait for Cheaper Houses
House prices fluctuate often. There have been times when house prices skyrocketed, only to plummet soon after. If prices seem excessively high, should you wait until they plummet? Timing the market is difficult. Some people get frustrated because they wait months or years until prices are at their lowest, they buy, and then prices continue to drop.
You shouldn't assume prices will go up or down, but you can certainly take advantage of times when prices are down. During a recession and right after a recession, prices may be at their all time low making a house purchase much more affordable.
Wait for Lower Interest Rates
Typically, interest rates go down during a recession. If you can get a very low interest rate, you can save a lot of money on your house. If you're planning to purchase a house, don't get hung up on low interest rates because if they do go lower, you can refinance your mortgage.
Wait Until you're Ready
Regardless of house prices and interest rates, never buy a house if you're not ready. You should have a large sum of money to put down for a mortgage, money to cover potential emergency expenses, and a good stable income. If you don't feel ready for a house, don't jump into it.
However, if you are financially ready to purchase a home, prices may still dictate your decision. If you feel prices are way too high and you'd rather keep living in a rented apartment, then wait. Don't do anything you aren't comfortable with.
Many people look at buying a house as an investment. In some ways it is. Over time, your house will most likely increase in value. However, first and foremost, it's your home. If you don't love it and you don't feel comfortable buying it, don't spend the money. The opposite is also true. If you found a home you think you can grow old in, don't pass it up just because you don't think you could get a good price for it later on. Know your limits and purpose for buying a house.
Wait for Cheaper Houses
House prices fluctuate often. There have been times when house prices skyrocketed, only to plummet soon after. If prices seem excessively high, should you wait until they plummet? Timing the market is difficult. Some people get frustrated because they wait months or years until prices are at their lowest, they buy, and then prices continue to drop.
You shouldn't assume prices will go up or down, but you can certainly take advantage of times when prices are down. During a recession and right after a recession, prices may be at their all time low making a house purchase much more affordable.
Wait for Lower Interest Rates
Typically, interest rates go down during a recession. If you can get a very low interest rate, you can save a lot of money on your house. If you're planning to purchase a house, don't get hung up on low interest rates because if they do go lower, you can refinance your mortgage.
Wait Until you're Ready
Regardless of house prices and interest rates, never buy a house if you're not ready. You should have a large sum of money to put down for a mortgage, money to cover potential emergency expenses, and a good stable income. If you don't feel ready for a house, don't jump into it.
However, if you are financially ready to purchase a home, prices may still dictate your decision. If you feel prices are way too high and you'd rather keep living in a rented apartment, then wait. Don't do anything you aren't comfortable with.
Many people look at buying a house as an investment. In some ways it is. Over time, your house will most likely increase in value. However, first and foremost, it's your home. If you don't love it and you don't feel comfortable buying it, don't spend the money. The opposite is also true. If you found a home you think you can grow old in, don't pass it up just because you don't think you could get a good price for it later on. Know your limits and purpose for buying a house.
Explaining Foreclosure
Advantage Property Ventures - Many people have questions about foreclosure. They don't know what it is, and they don't know what to expect. This fear creates a lot of stress. In order to avoid the stress, you should understand how the process works, so that you can feel educated. Explaining foreclosure to anyone that is going through this helps him or her to feel more in control of their life. Here are some of those details on what will happen in the foreclosure process.
There are two types of foreclosures that exist. The first is non-judicial foreclosure. This type of foreclosure, is mandated and controlled by state statutes. The bank will send the homeowner a notice of default and sale, and then they will publish an auction date in a newspaper. When this happens, then you have a deadline. If you can pay the bank, then you can stop foreclosure. If you fail to stop the foreclosure, then you will lose your house to foreclosure. If you can find a buyer during this process, then they can take over the loan, pay the debts, and stop the foreclosure before it goes to auction. This is very difficult to achieve however, because most buyers know that if they buy at auction, they're going to get a significant discount on the home. It is very important to avoid foreclosure.
The second type of foreclosure explained by Advantage Property Ventures is called judicial foreclosure. Judicial foreclosure begins with the letter being sent as a complaint through the mail to the homeowner. This complaint offers a chance to go to court and explain why the home is in this process of being in default. When you show up to court, the judge decides whether or not a foreclosure is authorized. If they approve the bank for their foreclosure, then they can go ahead and provide a new buyer through an auction of the property. You still have the opportunity to stop the foreclosure during a judicial foreclosure, even if the bank wins. You just have to do it during a certain period of time.
While this may seem extremely scary, it is important to be aware. Sometimes explaining foreclosure can help the buyer to feel more in control. Once they have an understanding of the process, the homeowner can handle the potential foreclosure far better. When the homeowner has this type of knowledge, they can potentially do something about the foreclosure far easier than if they didn't have the information.
There are two types of foreclosures that exist. The first is non-judicial foreclosure. This type of foreclosure, is mandated and controlled by state statutes. The bank will send the homeowner a notice of default and sale, and then they will publish an auction date in a newspaper. When this happens, then you have a deadline. If you can pay the bank, then you can stop foreclosure. If you fail to stop the foreclosure, then you will lose your house to foreclosure. If you can find a buyer during this process, then they can take over the loan, pay the debts, and stop the foreclosure before it goes to auction. This is very difficult to achieve however, because most buyers know that if they buy at auction, they're going to get a significant discount on the home. It is very important to avoid foreclosure.
The second type of foreclosure explained by Advantage Property Ventures is called judicial foreclosure. Judicial foreclosure begins with the letter being sent as a complaint through the mail to the homeowner. This complaint offers a chance to go to court and explain why the home is in this process of being in default. When you show up to court, the judge decides whether or not a foreclosure is authorized. If they approve the bank for their foreclosure, then they can go ahead and provide a new buyer through an auction of the property. You still have the opportunity to stop the foreclosure during a judicial foreclosure, even if the bank wins. You just have to do it during a certain period of time.
While this may seem extremely scary, it is important to be aware. Sometimes explaining foreclosure can help the buyer to feel more in control. Once they have an understanding of the process, the homeowner can handle the potential foreclosure far better. When the homeowner has this type of knowledge, they can potentially do something about the foreclosure far easier than if they didn't have the information.