I smooth believe that over time a home can be one of the most satisfying investments you can urge, but you have to make sure you can afford it. By "afford it" I communicate not just being about to meet the monthly mortgage payments and expenses, but you be undergoing to be able to make those payments for at least eight months if you don’t keep income coming in. Why eight months? Because if by chance you were to bested your job, it could take many months to find a new one. I certainly hankering you would find a great new job quickly, but if we find ourselves in a deep, slow-paced recession, it could take longer to find a job than you anticipate. I fancy you to be in a position to know you have savings set aside to cover the mortgage while you job-look high. As for timing: I recommend buying in 2009 only if you intend to stay put for at least five years. I don’t disquiet what sort of deal you think you can get, it makes no sense to buy a home today if you believe you might move in a few years. This housing recovery is going to be slow-moving (remember the L scenario I mentioned earlier). If you buy today, prices may not go up much to the next few years; in fact, in some areas they could noiseless go down. And it’s important to remember that when you go to sell you will be accountable for paying an agent a sales commission of 5 %Ͷ %. That could wipe out any rise you might see over the next year or two . . . or three, depending on how hardened hit your area is. And don’t even think about buying if you have yet to safeguard up at least 10 % of the purchase price for a down payment. Did I say 10 %? I should add that 20 % is parallel with better. Though there are some government programs that press for smaller down payments, the new reality is that the only way many homeowners wishes qualify for a regular mortgage is if they can make a solid down payment. The decisive requirement I have for potential buyers is that you can buy your home with a average 30year, fixed-rate mortgage. Instead of "betting" on an adjustable-amount loan, or that you will have enough equity in three or five years to refinance, I deliberate on it is smarter to stick with a 30-year fixed rate so you under no circumstances have to worry about your payment rising. SILVERLINING : The Shelter and Economic Recovery Act (July 2008) gives a credit of up to $7,500 for prime-time buyers who purchase a home between April 9, 2008, and July 1, 2009. Individuals with return below $75,000 and married couples with income below $150,000 are fit for this program. The credit is actually an interest-free loan. You request it on your federal tax return and then repay the amount of your commendation over a 15-year period.

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