Right now may be the best time to purchase a new house or refinance your existing home. Mortgage rates are the lowest they have been in years, so if you got stuck with a higher-rate loan years ago, refinancing now can save you tons of money on your mortgage payment each month. Depending upon the balance of your loan compared to the current value of your home, you may even be able to get cash back to pay off other high-interest debts, such as student loans or credit cards.
Low interest rates also make purchasing a new home much easier. If you have been wondering how to buy a house, the first thing you really should do is schedule an appointment with a loan officer at your bank or a local mortgage company. This loan officer can walk you through your different purchasing options, and help you decide which type of loan is best for your situation. Bring proof of income and be prepared to go over your credit report with your mortgage professional. You will hopefully be pre-approved for a loan up to a certain amount, based on your income, debt ratio, and a few other criteria. Once you know how much you will be able to afford, you can schedule an appointment with a realtor to look at houses in your price range. Keep in mind, of course, that you don’t have to borrow the maximum amount offered by your bank. You know your lifestyle best, and it is better to have a little money left over each month than become “house poor”, unable to eat out or go on vacations if those things matter to you.
There is a very strong sense of “strike while the iron is hot” going on in the housing industry. While many people are unable to purchase a home right now due to economic conditions, if you are lucky to be gainfully employed you can take advantage of low real estate prices as well as low interest rates. For those needing a good deal on a home, there is no time like the present to make your move.