It’s natural for first-time home buyers to feel nervous about entering the market. Buyers during the 1980s who entered the market felt the same way. They also felt nervous in the early 2000s when the market was booming. New homeowners must worry about the buying process, the cost of buying and how the purchase will affect the various aspects of their lives. Purchasing and owning a home is one of the biggest financial responsibilities people can take on during their lives.
The Jacksonville, FL market is somewhat different. In additional to the changing lending guidlines, obtaining homeowners insurance in Jacksonville and all of Florida has become more difficult and more expensive.
The home insurance industry has become more strict with their underwriting guidelines as well as limiting coverage options available to home buyers. Foreclosures, sinkhole claims, and the frequency and claims has has a major impact on the homeowners insurance industry in Florida.
Since the last economic crisis, lenders must be extremely careful about lending money to people with credit that is less than perfect. This makes it difficult for most people to obtain a home loan. In addition to the stricter credit requirements, most lenders require a down payment of at least 20 percent. The high unemployment rates make the step of buying a home even more nerve shattering. While these factors are all things that must be considered, there are a few important issues that prospective home buyers need to consider today.
First, interest rates have reached historic lows. With a 30-year home loan averaging between four and five percent interest, the rates are lower than they’ve ever been. The difference of the total price of the home at the end of the loan is phenomenal with such low rates. When the bubble burst, the rates of homes became even more affordable. Short sale and foreclosure properties are also available. They offer an even greater savings. The overall idea to remember is that housing prices are low and rates ensure that they’ll stay that way. However, potential home buyers still need to produce an acceptable down payment.
The values of homes are still falling. While this means a lower price to pay for a dream home, it’s important to remember that as values decrease, the amount of equity a home buyer expects to earn can be disappointing if values persistently fall. While considering this, it’s important to keep in mind that home values are directly related to the health of the jobs market. To better understand what housing prices will do, it’s best to take a look at the local employment statistics.
There are other reasons to buy a home other than hoping for a sound financial investment. Homeowners who plan to stay in their homes for several years will find that now is a good time to buy despite the fluctuations in pricing. A home purchase today is a good long-term investment. It is also good for social benefits. It’s important to think about the actual cost of home ownership. Each individual should determine whether it’s the right choice for their situation. If it seems to be too great of a responsibility, it’s best to avoid getting into such a situation. If it seems to be the right time, be sure to hire a good real estate professional who is knowledgeable and experienced. It’s important to be sure the person is easy to contact and can answer any questions. Although buying a home is a big decision, it doesn’t have to be as scary as it seems. To learn how to make the process easier and to discuss the necessity of homeowners insurance, speak with an agent today.