Michele Buckman has put together some videos discussing the current DC market and what the future may hold for the real estate market in the Washington DC area.
When people suggest buying a home in the Washington DC area based only on the interest rates at that time, they are missing crucial points and factors. Some have suggested homeowners who have purchased homes or refinanced an existing mortgage should consider refinancing to take advantage of the low interest rates. But is it really worth it?
When buying a home, people must consider more than just the current trend or the current set of circumstances that may entice them into buying a home. Long-term planning is essential for getting the biggest bang for your buck, meaning the biggest return on your investment. Buying a home should not be taken lightly or jumped into without great consideration for what the future holds for your household.
To receive the largest return on your investment, homeowners should think about how long they plan to be in the house. Most financial experts recommend not to buy a home unless you plan to live it in - or at least keep it - for at least five years from the date of purchase. Typically, it takes at least this long to see the type of return one hopes, and if not else it will probably take that long to build enough equity in the home to see a profit when it is sold.
Never jump into buying a home on a whim or with little consideration of your current and anticipated financial situation. If you know your financial status may be changing in the coming months, then the time is probably not right for buying a home. Inspect your credit report before applying for a home mortgage to know what you are facing. Even applicants with good credit may face problems with incorrect information on their credit report which will ultimately force a higher than advertised interest rate. The interest rate may not seem like a big deal, but when you consider the additional amount paid over a 30-year mortgage term, it certainly adds up quickly.
For more information and tips on buying a home in the Washington DC area, contact Michelle at Buckman Realty. Michelle specializes in the Chevy Chase, Northwest Washington DC, Capitol Hill and Trinidad neighborhoods, focusing on the sale and resale of single-family homes and estates, condos, co-ops and multi-unit buildings.