Pocono area (Stroudsburg, east Stroudsburg, Mount Pocono, and beyond!), first time home buyers,
I know you're out there! Even though you missed the tax credit, there are so many benefits to buying your first home NOW! Interest rates are lower than ever before. This will not last long. The current trend shows that soon, the historically low interest rates we see today will literally be history. The government will have no choice but to raise interest rates, now that the debt ceiling has been reached. it is estimated that they will go up about 1%. That's a lot of money over 30 years! You can not beat the price of homes on today's real estate market. You can literally purchase a recently built colonial, in move in condition for just pennies over $100,000. This surely means there is a home within your reach out there. It is hard to believe that for less than you are paying in rent ,you could own a home and build equity instantly. This is the time to buy a home, that could possibly put you in the position of consistently upgrading to newer, larger homes, at no cost to you! If you buy a home for $150,000 at the bottom of the market, live there for 10 years and take good care of it. Then at the top of the market, sell it for $300,000, you doubled your initial investment.
There is no need to fret that the tax credit is over. You will surely benefit from purchasing your first home today. There are ways to cut down on your initial investment in your future home. This is beneficial if you do not have a large chunk of money saved up at the moment. First, many sellers will allow a "sellers assist," They will give you 3% of the purchase price for closing costs. FHA only requires that you put down 3.5%, so 3% would really help you. Also, funds for closing costs can be "gifted," all that would be required is a "gift letter" from the person who gave you the money. This is nice, because many parents or grandparents are willing to help young adults just starting out. They remember how hard it was!
Do not continue to throw thousands of dollars away, paying rent to a landlord, or maybe a "slumlord" for that matter. You will surely enjoy the pride of ownership. customizing your home from top to bottom, without worrying that you're putting money into someone elses property, or that because of the changes, the landlord may choose to keep your security deposit.
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