Home affordability is at a high in Wisconsin. There are many high-profle experts that we will quote further into the article who say now is the time to buy a home. Before we get into the reasons why, here are some basic, yet important, things to consider when thinking of buying a home in Wisconsin and elsewhere:
Do you have a stable job and income? Mortgage lenders will require income verification, pay stubs, tax returns and more before lending to you.
Credit score has become very important. The higher your credit score, the less risky you are in the eyes of the banks. Your timely repayment of car loans, home loans, credit card bills and the amount of available credit affects your score.
Location will affect home affordability. A home in rural areas of Wisconsin is likely to cost less than a home of comparable size in a larger metropolitan area like Milwaukee or Madison. Think about this as you look for homes and decide which is more important to you: the metro location or the the smaller price tag.
Downpayment and Savings:
Talk with your Wisconsin real estate agent and mortgage lender about what downpayment you will need. The more you put down, the less you borrow. Without 20% down, your lender may require Private Mortgage Insurance or PMI. In addition to downpayment, buy wisely enough so that you still have savings for closing costs and any needed repairs.
What do YOU think is affordable?
Just because a mortgage calculator says you can afford X amount doesn’t always mean you feel comfortable with that number. Think about what you’d like to spend each month rather than what you can spend. You may end up finding a place that’s great for you for less than your maximum monthly payment.
Why now is the time to buy from the "experts"
With those important points out of the way, let’s get to some of the experts who believe this really is a great time to buy. If you are thinking down this road, these quotes should give you some confidence in your thought process. Information from KCMBlog
The Wall Street Journal stated last week:
"With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today."
Donald Trump was quoted saying:
"I’m pretty sure this is a good time to go out and buy a house. And if you do, in 10 years you’re going to look back and say ‘You know, I’m glad I listened to Donald Trump’."
A recent Gallop poll showed that 67% of American’s think that now is a "good time" to buy a home and went on to say:
"Overall, there is good reason for most Americans to think now is a good time to buy a house. Interest rates remain near historic lows. Home prices are down sharply, providing many incredible buys."
John Paulson, a multi-billionaire investment genius recently said:
"If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home."
Now certainly, he’s a billionaire with no problem scraping up a downpayment. But what is important is his enthusiasm about the real estate buying opportunities available now. Think about that. (I wonder how many homes he bought…)
We hope you found this information useful and the quotes inspiring. Talk to a Wisconsin mortgage lender and a Wisconsin real estate agent to get some great local real estate service in whichever area of Wisconsin you choose to buy in. We hope you’ll make use of the firstweber.com Wisconsin real estate website in your search.
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