It seems many buyers who've been sitting on the sidelines may finally get in
the game, according to Fannie Mae's June 2013 National Housing Survey. The
reason? The fear and expectation of both mortgage interest rates and housing
prices going up.
The agency posted this on its website. "The spike in mortgage rate
expectations this month seems to have had an impact on a number of the survey's
indicators and may increase housing activity in the near term by driving urgency
to buy," said Doug Duncan, senior vice president and chief economist at Fannie
Mae. "Consumers may recognize that today's still favorable mortgage rates and
homeownership affordability levels will recede over time. Given rising home and
rental price expectations and improving personal financial attitudes, more
prospective homebuyers may be deciding that now is the time to get off the
fence."
If you're shopping for a home here are a few things to help you decide if now
is the right time to buy.
A home is likely the largest purchase you'll ever make so understanding
what's involved is vital. Low interest rates, markets filled with short sales,
foreclosures, and high inventory could make this the optimal time to buy.
However, it's important to know exactly what you'll need when closing escrow.
Sometimes buyers don't consider all the fees and are shocked when it's time to
pay. Here are some of the costs involved with buying a home.
You'll want to hire a qualified real estate agent. Some states may require
real estate attorneys to help with the transaction. An agent and/or a lawyer
provide excellent expertise and knowledge, so it's wise to enlist the help of
these professionals as they know the ins and outs of the business and will help
you avoid what could be very costly mistakes.
A home inspection is another fee that you'll pay once you have decided on a
home you want to buy. Sometimes a homeowner has already had a home inspection
completed, but you'll want to bring in your own home inspector to compare
reports. This could cost several hundred dollars. If there are negative items
found about the home and you can't arrive at an agreement for either a credit or
having the sellers fix the problems, then you may consider not buying the home.
Other fees that will come up include title search and insurance, recording
fee, and transfer tax. Some of these fees can be negotiated and, perhaps, paid
for by the seller. Talk it over with your agent. How much a seller is willing to
pay for will depend on many factors including how quickly the home must be sold
and how close your offer is to the listing price.
Make sure you have a reserve so that you can pay for any unexpected changes
in your income or any maintenance issues that come up later with your home. A
lot of times things come due all at once, so be sure to calculate a good amount
of money to keep in an account that you will save for your home. When the time
comes and the money is needed, you'll give a huge sigh of relief and be glad you
have this safety account.
Written by Phoebe
Chongchua
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