There’s a lot that goes into buying your first home. You not only want to find a home that fits your needs and lifestyle, you also want to get prequalified for a mortgage, so that you know that you’re able to afford the property. You also want to time your purchase right so that you can take advantage of lower interest rates and get the best possible price on your home.
If you’re planning on looking at Atlanta homes and buying in 2015, there are two paths you can take: buy now, or buy later.
The sooner, the better?
One of the major reasons why it might make sense to buy earlier in 2015, rather than later, is that the interest rates on fixed rate loans are still relatively low. At the end of 2014, the rate for a 15-year fixed rate mortgage was around 3.3 percent, according to Money. The rates for 15-year loans are expected to remain less than 4 percent over the course of the year while the rates for 30-year loans are expected to climb to around 5 percent by the end of the year. At the start of 2015, rates on a 30-year loan are still less than 4 percent, making it an ideal time for people to buy Atlanta homes if they want the best possible rate.
Why waiting might be ideal
Of course, good things often come to those who wait and that might prove to be the case with homebuyers in the Atlanta area. Since the area was hit hard by the housing crisis and experienced a number of foreclosures, the number of homes on the market was reduced. But, as the value of homes increases and returns to normal, CNBC reports that more and more homeowners will be able to list their houses for sale, as they are no longer underwater on their loans.
That means that buyers who wait a few months, into the spring of 2015 or even later, might be able to choose from more options and might be better able to find a house that they can afford and that they actually like. While it might seem as though increased home prices would create a seller’s market, that isn’t expected to be the case, as the Atlanta INTown Paper pointed out. The increase in inventory will create more options for buyers in 2015, meaning that sellers who are serious about getting a sale will have to price their homes competitively.
If 2015 is going to be the year you buy in Atlanta, it might make sense to start exploring your options now. Get prequalified for a mortage so that you know what type of interest rate you’re eligible for and how much house you can afford. It could be that you find it worth waiting until more homes become available, or that you’re ready to purchase before the end of winter.
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