Frederick County Short Sale Blog | Homes for Sale in Frederick Md

To Buy or Not To Buy

A:  Most people don't succeed like they expected when they try to "time the market".  They wait too long to get the deal they thought they would if they timed it just right. Even many investors I know, who are experts in "timing the market" have gotten some lumps and bruises financially from the ups and downs of the real estate market.  It makes much more sense to try to align your real estate buy with your life than with the market.

In your particular case, however, if you're just trying to decide between this year and next, my advice is to go ahead and begin the mortgage-qualifying and house-hunting process now.

• You can't buy a home with no money. The mortgage loan qualifying process has grown very complex, difficult and drawn out over the past few years, even for people who are truly creditworthy.

For that reason, even if you were planning to buy a home next year, now is the time to contact a lender. Have them pull your credit, and work out an action plan for dealing with any potential financing bumps in the road.

• Many homebuyers today find that choosing and closing a deal on a suitable home takes a lot longer than it used to. There are many more foreclosed and distress sale homes to sort through to evaluate their condition against any discount they may offer. Many of the best deals will attract multiple offers or are short sales which can take months to close.

Your main consideration in timing your home purchase should not be whether you buy now or next year. It's whether the home you buy now will be affordable and right for you.

Home values aren't on a steep upward trajectory almost anywhere, so don't feel pressured by that. Mortgage interest rates, however, are a very different animal. Many market observers have predicted that mortgage rates will begin a somewhat steep, long-term increase this year.

If those predictions pan out, it's entirely possible that right now is a time of peak affordability. Regardless of market issues, I'd encourage you to start the process of homebuying.  And remember, it is a process, not an event.

The Highland Group