Next year may be the year to purchase a home

November 26th, 2012

Buyers are urged to begin the mortgage process before home prices rise and homeownership becomes less affordable.

Many would-be homeowners are sitting on sidelines and trying to determine if record-low mortgage rates will continue to drop to give them more affordable deals. However, some experts say that those who plan to purchase a home in the near future should do so within the next year to secure the best terms.

In a recent Wall Street Journal article, Zillow chief economist Stan Humphries said that mortgage rates will remain low in 2013, and home prices are strengthening, but still low enough for home buyers to get a good deal. The longer consumers wait to start the process, the increased likelihood that home prices will start to climb once again.

“We think the answer, definitively, is that home prices have bottomed,” Humphries told the Journal. “Right now, buying looks very attractive, even for short-term time horizons.”

The buying process typically takes between two and six months, making it important that interested buyers meet with a mortgage consultant in the near future to avoid missing their window of opportunity. As lenders are also staying strict about credit scores and income requirements, it’s also crucial that buyers get their credit in order well before starting the process.