3 Reasons to Buy a Home Now

Now is actually a pretty good time to buy a home. If you can afford a home, here are 3 reasons that now is a good time to buy:

1. Government tax credit: If you are a first-time home buyer, then you are likely eligible for a tax credit of $8,000 when you buy. This is a tax credit that can actually be applied now, and used as part of your down payment. You may be too late to get the tax credit, though: Your home has to close by November 30, 2009. However, Congress is considering extending the tax credit to May 2010. And there is also a bill for a $15,000 tax credit on the table, but that faces stiff opposition. So maybe it’s worth holding off for a couple more weeks…
2. Low prices: Even if you don’t qualify for a tax credit, you can still get a great bargain on a home. Home prices are pretty low, and the large number of foreclosures and distressed homes on the market mean that there are even more bargains. Just be careful. In some cases, you might have to fix up distressed properties.
3. Low mortgage rates: In addition to low prices, mortgage interest rates are quite low. You can save thousands over the life of your loan by locking in something now. Even if you aren’t buying, you can save a great deal by refinancing.

It is important to make sure that you can afford a home, though. Even though it is a great time to buy, it does you no good if you can’t actually keep your home. If you have been thinking about buying, and you can afford it, it might be time take the plunge.

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