3 Questions to Ask Before Buying a Home in the Twin Cities

Sometimes it can feel like everyone has advice when it comes to buying a home. While your friends and loved ones may have your best interests in mind, they may also be missing crucial information about today’s housing market that you need to make your best decision.

Before you decide whether you’re ready to buy a home, you should know how to answer these three questions.

1. What’s Going on with Home Prices?Home prices are one factor that directly impacts how much it will cost to buy a home and how much you stand to gain as a homeowner when prices appreciate.

There is so much value in homeownership, from the financial opportunities it provides to the pride and satisfaction you feel every time you unlock your front door. If you’re even considering homeownership, it’s important you ask yourself these three questions before you begin your journey.

Home values are forecasted to increase by 12.46% this year. After factoring in an additional $43,610 is what your home will cost in total over the course of the year, it makes a lengthy delay to purchase nearly impossible to justify financially. And with mortgage rates expected to rise as well, postponing purchasing can more than double the final cost of buying a home. Our experienced real estate agents are ready to help today.

2. Are Today’s Low Mortgage Rates Going To Last?Another significant factor that should inform your decision is mortgage interest rates. Today’s average rates remain close to record-lows. Much like prices, though, experts forecast rates will rise over the coming months, as the chart below shows: Key Questions To Ask Yourself Before Buying a Home | Simplifying The Market Your monthly mortgage payment can be significantly impacted by even the slightest increase in mortgage rates, which makes the overall cost of the home greater over time when you wait.

3. Why Is Homeownership Important to You?
The final question is a personal one. Before deciding, you’ll need to understand your motivation to buy a home and why homeownership is an important goal for you. The financial benefits of owning a home are often easier to account for than the many emotional ones.

The 2021 National Homeownership Market Survey shows that six of the nine reasons Americans value homeownership are because of how it impacts them on a personal, aspirational level. The survey says homeownership provides:

Stability
Safety
A Sense of Accomplishment
A Life Milestone
A Stake in the Community
Personal Pride

The National Housing & Financial Capability Survey from Neighbor Works America also highlights the emotional benefits of homeownership: Key Questions To Ask Yourself Before Buying a Home | Simplifying The Market Clearly, there’s a value to homeownership beyond the many great financial opportunities it provides. It gives homeowners a sense of pride, safety, security, and accomplishment – which impacts their lives and how they feel daily.

Bottom Line
Homeownership is life-changing, and buying a home can positively impact you in so many ways. With any decision this big, it helps to have a trusted advisor by your side each step of the way. If you’re ready to begin your journey toward homeownership, let’s connect to discuss your options and begin your journey.

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