Am I missing the boat?

I know mortgage rates are going up DH and I started looking last summer. He is now out of work until he passes 2 tests that are very difficult for his job on the LIRR. I've been looking on MLSLI and still haven't seen my dream house anyway. I just feel like things were so great for buyers and now it's getting up there again. Ugh! Am I bring too picky? Do we start to look more seriously now or do you think it will it maybe stay this way for another 6 months or so?

Am I missing the boat?

IMO, buy a house when you are ready. I would say it isn't an ideal time (and you probably won't be approved for a mortgage) with your husband out of work.

Am I missing the boat?

You can never perdict the interest rates. As for the houses....I think soem towns are coming back but others are not. My the prices in my neighborhood have stayed pretty flat since I moved in almost 4 years ago.

Prices of homes are not going to skyrocket over night.

Just an FYI......don't rule out homes based on their MLS profile. There were houses I thought I would love based on the profile and in person they were horrible and vice versa. You really need to see houses to really know if you will like them. Also, be flexible on soemthings.....know what is a drop dead deal breaker and what you can flex on.

Re: Am I missing the boat?

Re: Am I missing the boat?

Buy a house when you are ready. DH and I felt so bad about ourselves when all our friends were buying houses a few years ago and we couldn't. In the end, we are SO glad we didn't jump in before we were ready.

Also, have you spoken to a mortgage broker yet? It's a simple process and it will give you a better idea of if you should jump in now or wait, especially with your DH out of work. We thought it would be impossible for us to qualify for a mortgage, and if we hadn't met with our banker when we did we would have missed out on a great opportunity. Even if he had told us a mortgage wasn't possible, he would have been able to help us with a solid game plan for the future. So there's no downside to speaking with someone, if you haven't already.

Re: Am I missing the boat?

Message edited 7/16/2013 4:58:32 PM.

Re: Am I missing the boat?

While of course, someone should only buy a house when they feel ready to take on that responsibility (and when it's financially feasible), I do think that there is an element of urgency for many buyers right now because of rates.

The rates have gone up, and while they vary day to day and it's hard to predict where they will be at any given point in time, I think most economists and mortgage bankers are saying that rates aren't going to go back down to where they've been and will continue to go up. If you are comfortably approved for the price point you want to buy at, then if rates go up a point, it will cost you, but it's not a make or break. But I have buyers who are approved for a purchase price of $300K and are looking in areas of Nassau where there's barely anything available now in that range. If rates go up more and their budget shrinks, they will have to go way further east than they want to, or consider a condo or a co-op. So for them, rates really will have an impact on their purchasing power.

I don't know the OP particular situation, in terms of what their budget is. But assuming your DH is working again and you can get a mortgage, and assuming you want to buy and are ready to buy, I would encourage you to really step up your search. Find a real estate agent you like and want to work with, go out and see houses, educate yourself on what your dollar can buy in your desired area, etc. I hear a lot of buyer say they don't want to settle. But once you see what's out there and know the realities of the market, making some informed compromises isn't settling, it's being realistic about what you can buy, and choosing the best option out there for you. If you wait too long, you can miss the boat, and that is not real estate pressure. I was helping a family member find a home recently, and I had this exact same conversation with them. I think it's really smart to buy now if you can, because I don't think waiting will make the situation better for any buyers (in terms of available inventory, pricing of homes, rates, etc.).

I also agree 100% with the poster who advised you to not be too quick to judge online listings. Some real estate agents are very talented at marketing, and do great photos, colorful descriptions, etc., and some don't take the time or the effort to do that. Some listings are misleading, and even when they aren't, it can be hard to judge the layout of a house, the space/size of the rooms, the location/area, and the general "vibe" and appeal of a home just from looking at a listing. I encourage buyers to be open minded.

I know from my own experience of buying a house in my pre-real estate days that DH and I scoured the internet for options, but the home we bought was not one that we identified on our own, but one that our real estate agent asked us to see. It was priced a little higher than we wanted to look, it was a style of home I wasn't sure I wanted, it was on a corner, which DH definitely didn't want, but because it had everything e wanted and more (and we were able to negotiate down a bit), we wound up buying it!

Good luck, and please let me know if I can help you at all with your search, or if you have any questions about the buying process or any specific areas/homes.

Re: Am I missing the boat?

You know your budget and what you can and can't afford. Do not get into something above your means and you will be fine. I would make sure to keep at least 20-30k for contingency costs- ie boiler breaks, tree falls on your house, appliances break etc. if you are trying to figure out a minimal amount of extra $ to have after your down payment and closing costs.
As far as rates and prices, higher mortgage rates can be a bargaining tool to get a lower price. If there is not a huge buyer demand sellers will have to come down in price to sell or hold their property until they get their asking price. Besides a few select towns on LI, as long as the majority of employment opportunities on LI remain in the lower to mid middle class salary scales I don't think the prices are going to drastically increase. The biggest moving market is in the 300-400k range and that is where I think you'll see people who have saved and have the money start closing because they can afford to and want to lock in at the lower interest rates compared to the increases they've recently seen.

Am I missing the boat?

Like pp's stated do not go by the profiles on MLS--they do not give you a true picture of the space. It cannot hurt to start looking or going to open houses- This is an excellent time to buy if you are ready to buy. DH and I recently bought our first home and it was the low interest rates that allowed us to afford our home. One tip that our Realtor gave us that helped us was to make a list of must haves that were not negotiable-By making a realistic list we were able to find a home that fulfilled all of the must haves--Good Luck!