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Publish Date: June 8, 2022
As we enter a time of high inflation, many are wondering if now is really a good time to buy a home…especially millennials on the path to homeownership.
“It’s not necessarily a matter of finding the perfect time to buy. If you are, you’ll be waiting forever for all conditions to be favorable,” said Jim Knabel (NMLS # 640446), Vice President at Fidelity Bank & Trust in East Dubuque. “Rather, it comes down to when you are financially ready for a mortgage.”
Here at Fidelity, we celebrate June as National Homeownership Month. Knabel details 3 questions to consider if you want to buy a home and why today’s market may still be a good time to buy:
Consider asking yourself if you have stable employment and/or income? Is your income sufficient to pay current obligations in addition to a new mortgage payment? Do you have funds available for a down payment?
If you answered yes to these questions and you think you’re financially ready, ultimately the sooner you buy, the better. Even in times of inflation like we’re currently experiencing, real estate is a good investment as you consider appreciation and tax benefits*. Find a lender to discuss your options and help you determine if you are ready to buy.
While interest rates may be on the rise, historically, they have been much higher. Currently, you can still lock in a favorable interest rate for a mortgage.
Although none of us are fortune tellers, it is also important to consider what rates are forecasted to do when considering buying a home. In today’s economy, it is expected that interest rates will continue to rise due to inflation. Locking in a rate before they increase even more is a good idea if you are financially ready to buy.
Most markets are experiencing low inventory which creates a seller’s market and can drive up the price of homes; however, real estate is still generally a safe investment.
Your best bet is to get pre-qualified before you start house shopping, so you are prepared to act quickly! Apply now or find a lender to get started on your pre-qualification, and build your team of experts including your local lender and a realtor.
Learn more about the path to homeownership and what documents you will need to obtain a mortgage from Fidelity Bank & Trust. Visit our Mortgage Center to check rates, apply online, find a lender and more mortgage resources from Your Hometown Bank!
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