Homeownership is the foundation of the American Dream. We celebrate this by recognizing June as National Homeownership Month. The history of National Homeownership Month began in 1995 as National Homeownership Week, a strategy of President William Clinton’s administration to increase homeownership across the nation. In 2002, President George W. Bush expanded the observance to the entire month of June. Many years prior to this observance, President Abraham Lincoln signed the Homestead Act in 1862 that gave the head of each American household the right to claim a 160-acre homestead if they want to build a home on the land and farm on it. In 1950, for the first time in American history, more than half of all Americans owned their homes.
Homeownership is the best path to wealth creation for a majority of Americans. Every mortgage payment you make increases your equity. Homeownership is more than a financial investment. Owning your home means owning your future and a place to raise your family.
No matter the conditions in the broader market, the best time to buy a home is always right now. Today’s inflation may be a better outlook for buyers as it tends to reduce competition for homes. And the equity earned by homeownership has always been a good “hedge” against inflation.
You may be happier buying now as homeownership offers a sense of belonging and security that everyone in your family will appreciate. You’ll also avoid future rent rises while reaping attractive tax benefits (your tax advisor can fill you in on these).
Attempting to time the real estate market is tough. The 2020 arrival of COVID was a big reminder that nobody can predict tomorrow’s markets. So, if you are waiting for interest rates or home prices to fall before buying, you may end up waiting for years while you miss out on the economic and personal benefits of homeownership.
The homebuying process can be exciting and long. To find exactly what you’re looking for, be sure to take your time and be patient during the process – your home is an important investment, so take the time to make sure it’s right!
Tips for success through the process:
- Contact a Mortgage Lender to help you get started on the Pre-Qualification process BEFORE beginning to search for homes.
- Be upfront with your Lender and Realtor to make sure you communicate your goals and expectations so that they may best serve you through your purchase.
- There are no stupid questions! Ask and ask often.
- No home is a perfect home.
- You will see some real doozies. Keep in mind that paint, carpet, light fixtures, and upholstery can all be changed and tailored to your taste and style. Customizing your home is half of the fun!
- There will always be that one thing that you wish were different – try to focus on what each home has to offer and how it checks off boxes in your “needs list.”
- Take your Realtor and your Lenders advice.
- Be smart with your money and spending during the process.
- Avoid making any large deposits or moving money around.
- Do not go on vacation during the process of buying a home.
- Avoid opening any new credit accounts and taking out any loans.
- Be open minded and keep good communication between all parties.
- Trust in your advocates and they will ensure that you have an exciting and fun experience buying your first home!
At Core Bank, our team is dedicated to helping you find the right mortgage. Our team can guide you through the home-buying process with ease. Meet our team and get started today!