6 Reasons To Hurry Up and Buy A Home Before The End Of The Year!

1. Avoid the risk of rising rates: Mortgage interest rates are up 1 to 2 percent over this time last year. According to Mortgage Bankers Association they anticipate that mortgage rates will rise to about 5 percent in 2014. The best thing to do is if you buy now and the rates drop, you can always refinance; but on the other hand, if you wait and the rates rise you are stuck at that rate.
2. New Year, new lending rules: As January 1 approaches, lending rules may change and it can be harder to get a loan. The rules of 2014 will allow you to borrow less, at your same level of income. In 2013, the current mortgage rules allow for a 45 percent total debt to income ratio (DTI); whereas in 2014, the DTI will go down to 43 percent.
3. Easier Financing: If you’re waiting for home prices to decrease, don’t. The mortgage changes in 2014 could make it harder to get financing. If you’re waiting for home prices to drop, you could miss your window to secure a mortgage entirely. Plus economists believe home prices will increase by at least 6% nationwide.
4. Lower sales could mean higher inventory: This year, housing sales have been declining since September so inventory has finally increased. Many buyers wait to make purchases until after the busy holiday season, but you will have more options to choose from in your home search.
5. Maximize tax deductions: If you buy before the end of the year, you can begin deducting interest and building equity immediately. Some closing costs and points are tax deductible in the year you buy a home. If you choose to buy now, it allows you to include them on your 2013 tax return.
6. It’s not too late - We can do it! Prudential California Realty’s in-house escrow company, Affirmative Escrow is able to close your escrow by the end of the year – and having them on your team with make for a smooth transaction. So you can start enjoying the benefits of homeowership!

If you are thinking about buying or selling a home in Ventura County, please visit www.prucalhomes.com to search for properties and find an agent!