Is it time to start thinking of buying your first home? The first well maybe second step in finding your dream home is talking to a lender. Discovering what you might qualify is a huge piece of the puzzle. However, sometimes the loan you qualify for is not nearly as important as what you want your house payment to be. If you are currently renting a home and you’re comfortable with the rent payment, keeping your house payment in that price range will allow you to continue to live the life you are accustom to. (first step would be to make the decision to buy a home in Central Oregon)
It was not that long ago that we experienced this as almost an impossibility. However, since the “big real estate crash” prices of homes have fallen and pretty much stabilized and rents are climbing. Many 3 bedroom 2 bath homes in Bend, Oregon rent for well over $1000 a month. Many homes between $150,000 and $200,000 (even with as little down as 3.5% for an FHA loan) will calculate out at a lower monthly mortgage payment than a rent payment.
How long this will continue is unknown! We do know that in the past the biggest benefit to home ownership was based on the tax benefits and the building equity. Today those things are still present, but you can also pay less for more house than your rent can provide.
So… is 2014 the year for you to purchase your first home?