Wednesday, September 22, 2010

When is the best time to buy and sell real estate?

It's always a good market for real estate, the timing is up to YOU!

If you are a homeowner who is ready to sell your home - or a homebuyer who is ready to purchase your dream home, the good news is that anytime is a good time to buy or sell real estate – YOU are the deciding factor! The best time is when YOU are ready.

Now for the really good news

There are factors in our market right now that make it easy to decide to buy or sell real estate. With interest rates at historical lows, you can get more for your money, and even free up some of your cash flow with lower payments and have money to spend on other necessities.

Here’s an interesting scenario:

A 30-year loan of $250,000 at an interest rate of 4.5% in comparison to 6.5% will save you $113,051.70 over 30 years! And yes, right now 4.5% is readily available on most loan products.

Your monthly payment on a 4.5% loan (P&I) would be $1,266.71; the payment on the 6.5% loan (P&I) would be $1,580.17 - the difference in the monthly payment is $313.46. The monies saved on the mortgage could give you some financial breathing room, or be utilized for other household needs. Mortgage rates are low now, but they won’t stay there forever. NOT buying now, could have a financial impact on your future.

You’re ready, so where do you start?

First, call your real estate agent, or consult with a mortgage professional – they can give you specific information based on your personal situation. Here are 3 key things you will need to start working on and be aware of as you move toward a real estate transaction:

  1. Down payment - 3.5% down payment is required on an FHA loan - Max FHA loan is $271,050
  2. Credit Score - Minimum of 620 (FHA & VA loans) - In general, lenders are requiring borrowers have a minimum 620 Credit Score. There are higher requirements on conventional loans.
  3. Documentation. Borrowers are asked for much more documentation to verify income, assets, and other items necessary to meet investor guidelines. Speak with your CENTURY 21 Judge Fite Real Estate Agent or a recommended Cendera Funding Loan Officer and begin collecting the documentation early (even before you have found a property) will simplify and expedite the process!

Buying and selling real estate is about YOU – your desires and your life needs. When you are ready to make the move, that’s the best time - and we will be here to help every step of the way!