I suggest that you get pre-approved and start looking, with the idea of being educated and also be ready to buy when you see something that fit your needs. Perfect house don't come often, being ready to buy will be very helpful.
And, yes, the rate is historically low (since 1971), when that house comes along, go ahead and buy it, don't wait.
Understand: I'm not arguing in favor of, or against, buying pre-marriage. I'm just saying that there are a lot of additional complications if you do buy now, but that those complications can be minimized or avoided if they're thought through and addressed now.
Hope that helps.
I believe as most experts will agree that this market is far from recovering to the point that great deals will not be available any time soon. I suspect interest rates will remain low and purchasing a home not too far in the future will be a great option if you decide to wait. Best of luck :) Ben
There are some really great real estate opportunities right now, but there may also be great opportunities next year. It really depends on your relationship , the market, and your finances.
Buying real estate is a serious commitment and in this market it is mostly a very long term investment. I have been married 36 years but be before we were finally married we had separated, canceled, and rescheduled our marriage 3 times. My dad said "Don't do it if you are not committed 110%." I took his advice and she has mostly forgiven me for that. You may want to have a written agreement covering what will happen in the event the marriage doesn't take place and there is a separation for any extended period of time. It would be a good to seek the advice of an attorney and protect yourselves. Blessings and best wishes!
I wish you the very best in your future!!
Buying real estate is a serious commitment and it's unlikely you can "flip" property easily in this market if something goes wrong. You may want to have a written agreement between you and your intended, outlining what will happen if for some reason the marriage doesn't take place (sorry, I'm sure it will and that you'll be very happy!). Whenever you sign a contract relating to something as valuable as a home, you want to cover all the bases legally. My advice is to seek the advice of an attorney and then shop! Good luck and best wishes!
With regards to your question. Unfortunately, one of the things that agents cannot offer in our long list of services is predicting the future. As others have said, rates are at historic lows. Will they be lower next year or the same or higher? No one can know for sure.
You have to ask yourself if the risk of waiting until next year to see what the rates will be outweigh the potential delta in rates if they continue to decline or if they increase. It is really tough to catch the exact bottom of any financial market. At some point you just have to go with your instinct.
Are you ready to buy now? Are you prepared financially and mentally and have enough time available? Planning a wedding can be time consuming, expensive, and stressful and so can buying a house and moving. Something to keep in mind.
Whatever you decide I wish you good luck!
Congrats on your upcoming marriage. No one on here can 100% predict what will happen next year. IF you can find the home you want now, you may want to consider buying now. Why? Because interest rates are sub 5%...and that does not happen. We don't know what external factors will influence rates next year. We also don't know how prices will go.
Home values could go north or south and everyone has an opinion. Since we cannot see into the future, we as real estate professionals can only advise clients based on what we see today. But find a reputable and patient REALTOR in your area to assist and advise you.
Congratulations on your upcoming marriage! What an exciting time for you. If you are ready and able to purchase now, do so! The interest rates are at a all time low and are expected to slowly rise. In addition, the home values are still lower. This means more house for your dollar and less interest over the course of your loan. What a fantastic combination! Good luck...
I see no reason to wait. There are several ways to hold title as an unmarried couple and your attorney can help you choose the best way to protect both of your interests. I'm an agent, not a lender, but both of your credit scores and financial information will be considered whether you are married or not. Many couples, friends, or family members buy real estate together. This is such a good time to buy while the rates are low and so many properties are on the market at great prices. Don't wait!
Getting the loan, whether married or not, should not be ipacted by marital status.
I see no reason to intentionally wait to purchase as interest rates are at an all-time low and housing values have fallen significantly. You seem to be in a good position as you are not in a hurry to buy, so why not start looking for something that you and your realtor feel is a good deal? From a financial perspective, it doesn't benefit you to wait unless you need to save up more money. Of course, if it's an issue of commitment, that's a whole different story.
Of course, your personal financial situation really governs the decision. Do you have money in reserve? Are you both feeling secure in your work environments? Have you looked at the cost benefit from buying and getting a tax deduction instead of renting? Have you met with or talked to a Real Estate Professional about your expectations for home ownership? All the best to you!.
It is currently a great time to buy,I have been in real estate since 1993 and there have never been lower rates or better deals on homes than now.
The main question is have you gotten pre qualified,know your financing options for your area and comfortable with all that entails being a homeowner?
Best of luck to you,buying your home is a wonderful step in your life for you and your family
It does not matter if you are married or not. Your credit scores matter! If you see a house you want to buy and you are qualified by a lender, go ahead and buy it! Interest rates are at a 50-year low...We know what it is today, but we don't know what it will be in a year...same thing with prices of home....they are about half of what they were 5-6 years ago...if they go up in a year, you might regret waiting until then to buy!
Right now, it's a WIN-WIN! Go for it, and congratulations on your pending marriage!
If you are looking in the Pasco/Pinellas area, call me at 727-967-9444 and I can help if you don't have an agent. We also have an inhouse lender to get you pre-qualified.
Anna Georgiadis, PA, GRi
REALTOR since 1987
RE/MAX New Dimensions
If you both have secure jobs, there is no reason not to go ahead and find the home of your dreams now. The interest rates are beyond low right now. I just saw an approval letter for 3.75%!! Waiting until its official may end up costing you money if the rates go up. My husband and I bought our first home 6 months before we were actually married and it allowed us to save more money for our dream honeymoon. It was better to make one house payment versus two lease payments. Ultimately the choice is yours. do what feels right to you.
If you decide your ready, speak to a few lenders and see who you like. I would choose someone local over some of the on-line lenders. Local people are more likely to be there for you when you need them, and some even go to the closing with you in case there are questions. Once you have the approval then interview a few local Realtors and choose one that you like and feel communicates well with you.
There are some really good answers here and lots to think about. I've taught home buying classes at our community college for years and helped hundreds of first time buyers and have one thing to say. If you decide to buy, you need to think about what happens (god forbid) if you don't end up getting married. Not to be a downer, but if something happens and you don't get married, having a house together is very challenging. Best of luck and congratulations on your wedding & home buying plans!
With historically low interest rates it might be a good idea. The first thing you need to do though is connect with a very good local expert. Interview several and base your selection of agents on someone willing to spend time to ensure your questions are answered and knowledge of local area as well as how well you think you'll get along. In most cases the answer to your question is buy it now, but local conditions might be different.
I thought you might be interested in my latest blog posting where I answered the question I hear so frequently when I'm talking with Buyer clients, "Do you think I should Buy now or wait for prices to drop in the next 6-12 months?" Until I sat down and started doing some research and actually crunching some numbers it was a question I found it hard to answer this question objectively.
When I finally found the time to analyze the data, even I was a little surprised at what the numbers showed. I've supplied a link directly to my posting and what the numbers showed; I think you'll find it interesting.
Your marital status isn't likely to effect the mortgage rate you receive. That's based on your income to debt ratio, credit scores, and your assets (i.e. cash you can bring to the table). I am not familiar with Tennessee property and inheritance law, this would be something to ask a local real estate attorney in your area, but if you buy prior to getting married you'll want to get the deed modified to reflect you married status once you are. In our area the attorney you used when you buy a home, would typically do this for around $100.
Congratulations on your upcoming wedding, and best of luck to you and your fiance in finding a great home.
Pro's: Buying now will allow you a 30 year fixed interest rate between 4.25 and 5.25% (I can't give you a direct rate because I don't know the type of program that would best fit your profile and therefore I can't quote you an APR - which is required by law to give when quoting rates).
If using FHA to buy a house, the mortgage insurance premium is getting ready to increase $35 per $100,000 borrowed, very soon. This will result in an increase in your monthly mortgage payment. Their is another cost for FHA loans called Up Front Mortgage Insurance Premium which is financed into your loan. This amount will decrease from 2.25% to 1%. This means although your mortgage insurance payment will increase, your mortgage insurance premium will decrease.
FHA is looking into decreasing the amount of money the seller can pay towards your closing costs. These seller paid contributions are currently sitting at 6% of the sales price. It's expected that the maximum seller paid contribution will drop to 3%.
Currently, loans can be obtained with a 620 score (although 580 is still accepted, it's becoming harder to find a bank who will lend at that low score). HUD is considering increasing the minimum requirement to 660.
Housing prices are really low right now. Who knows what the November election will bring. Perhaps a recovery of sorts and prices will go back up again. You'll kick yourself for not buying that house for $20,000 back then...
...and maybe rates will go back to 6-8% where they were years ago. Who knows?
Cons: You can't decide who is going to fill the dishwasher and who will empty the dishwasher.
Who will clean the bathroom and who will take out the garbage every week?
Will you really use the couch downstairs for punishment or will you talk it out and sleep in the same room regardless of the outcome of the discussion?
In Conclusion: Don't base your decision on a rate. Base your decision on the location of where you want to live, who you want to live with and how long you want to live there. Oh and paint the walls using the colors that SHE wants to use.
Best Wishes and Congratulatioms,