Looking to buy a home?

Yes, it is true that the housing market in many areas across the country has been stagnant for months, if not years.  Yes, it is true that new lending guidelines have made it tougher for people to borrow money. 

But despite all the naysayers in the media about the housing collapse, now is the time to purchase a home, if you are in the market for one.  

In a September 16, 2010 Wall Street Journal article, there are at least 10 reasons why now is the ideal time to purchase a home.  Among the list of reasons: 

1.    It is a buyer’s market.  This enables purchasers to negotiate great deals on closing cost credits and purchase prices.  

2.    The decline of mortgage interest rates.  Rates have remained steadily low, which means a reduction in monthly payments and less overall interest paid back to the lender over the life of the loan.  While the new lending guidelines have made it tougher for many to secure financing, there are still many programs out there, including FHA loans and VA loans, which enable buyers to put less money down and finance a large portion of their purchase price.  

3.    Tax deductions.  Purchasers are able to deduct both their mortgage interest, points paid to lenders at the time of purchase, and property taxes paid each year on their federal income tax returns.    

4.    Equity.  Housing prices will eventually increase, which will result in instant equity in your home.  

5.    The final reason why now is the time to buy a home: There are millions of homes around the country that are currently for sale, giving purchasers a multitude of properties to choose from, including properties undergoing short sales and foreclosures.  

If you do not want to wade into the realm of short sales and foreclosures, another possibility are houses that are currently being sold by the Federal Government under the Homeowners Assistance Program (HAP).  Under the program, the government purchases certain homes from military and civilian government employees affected by base realignments and closures, and those forced to move as a result of permanent change-of-station orders which occurred during the housing crisis.  

As HAP officials continue to process applications, the list of inventory will continue to grow.  If you are interested in purchasing a home from HAP, it is important to constantly check their inventory list, as the government attempts to sell the homes quickly, and new homes are added frequently.

If you are uncertain whether to purchase a home now, or wait and see what happens – now is the time to buy.  With the glut of homes on the market and the incredibly low interest rates and mortgage programs now available, it is hard to pass up this golden opportunity for buyers.