When Is It The Right Time To Buy?

Owning a home is a great dream to fulfill. There is something about knowing that the walls that surround you are yours and if your lucky, so is the yard. But when is a good time to buy for me? I have money saved up, but is it enough? I know prices are low but I heard they may get lower; the news calls it a "double dip". Everyone who is thinking about purchasing a home right now has these question and probably a lot more they are asking.
First things first...find a good loan broker who you trust to get you pre-qualified. When you lay all your cards on the table for that loan broker, try to listed carefully to what they say about your finances. Here are some things to keep an eye out for when looking to get a loan: If your loan broker has nothing but "yes" or "no problem" or "you shouldn't worry about that" to every single thing you say when tell them about your skepticism or situations you think may be a red flag for your finances, then you may want to find someone else. You really want someone who has your best interest in mind and if they are a "yes man", you may find yourself in a difficult position down the road. If you want to be the safest person out there, rule of thumb says you should have a 20% down payment, plus about 2% of home price for closing costs, and a nice savings account for a safety net. There are financial advisers out there that say homeowners should have 6 months worth of your mortgage and all bills in your savings. I know you are thinking "WOW, that's a lot". I know it is, but this is the safest way to go. Most people don't do all that but I do believe that however you divide your finances up, that having a savings account for the unknown situations that come with home ownership is very wise.
Next thing is finding your realtor. Same thing applies here as did with the loan broker...don't go with the "yes man". Looking for a house can be overwhelming and sometimes emotions get involved. If you are looking for a 3 bedroom home, on a street with little traffic, in your chosen school district because you and your spouse are hoping to start a family, then remember what you started out looking for. Of course your agent will show you things that don't have everything you want, because unless you have an unlimited budget, that can be hard to find. But you also don't want to walk into a 2 bedroom condo right next to all the night life, fall in love with all the upgrades and have your realtor telling you it's perfect for you needs and you can sell it in a couple years when the kids start coming. Fact is, you may get the condo because that is what your money can get you at that moment, but your realtor should be honest about what is best for you and not sell you on a hope that you can resell if it doesn't work out. Way out all the pros and cons on a piece of paper if that helps and ask your realtor's opinion about the matter.
And finally, "The Big Dipper"..oh wait, I mean "The Double Dip". I don't know about you but just hearing makes me hungry. Okay, all joking aside, I know this is on your mind. Fact of the matter is that no one can predict the future and there are just as many opinions as there are anchormen and news channels. This is what I know: ratings sell. I can't say for sure where the economy is going and anyone who says they know, knows nothing, all we can do is take an educated guess...and how educated are the guesses they sometimes put on the news stories...don't forget, ratings sell. What I do know is that home prices are extraordinarily low. Most homes are selling from 10% to 30% cheaper than they were four years ago, especially if you look at short sales. And the rates for a loan are also extremely low. In 2000 they were at 8.5% and today you can hope for 4.75% (everyone is different). The difference on a $300,000 purchase, with those two rates, is $267,048...almost another home. Point being, don't look a gift horse in the mouth. If you are financially ready to buy and at the right place in your life, then do it! This market is like a sale on top of a sale. Just don't forget to find a good loan broker and a good realtor to help you along the way!