Cost of Waiting to Buy a Home

It can be easy to sit on the fence when it comes to purchasing a home. You may be undecided about whether you’re ready for the commitment or you may think you can’t afford it. Or maybe you're still considering where you want to live long-term. Whatever the reason for your hesitation, it’s important to remember that there are costs associated with waiting to buy a home – both financial and otherwise.

We want to help you make an informed decision so you can hop off the fence and into your new home as soon as possible. Keep reading to learn more about the cost of waiting to buy a home, and how you can overcome your concerns.

The Financial Burden of Waiting to Buy a Home

Weighing your options is important when making any big decision, but when it comes to buying a home, there can be big drawbacks with holding out.

One of the most significant costs associated with waiting to buy a home is the interest you’ll accrue on your mortgage. Interest rates have been at historic lows for the last few years, but that’s changing. The Federal Reserve has already raised rates four times this year and is expected to do so again soon.

What does that mean for you? If you wait to buy a home you run the risk of mortgage rates increasing, prices going up, and the uncertainty of availability of the new home you desire; plus, continuing to rent doesn’t add to wealth-building. Despite recent increases, mortgage rates continue to be low; whereas, rent and costs to repair older homes continue to rise.

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Someone who buys a $400,000 home with a 20% down payment, at a rate of 5.62%, will likely be paying less than their current rent today! Plus, you’re building equity. However, if that rate goes up even one percent to 6.62%, that same loan now costs over $200 more per month in interest. That’s about $75,000 more over the course of a 30-year mortgage.

Check out our mortgage calculator here to see what you might pay on a new home.

Remember, every time you make a mortgage payment, a portion of that payment goes toward the principal, or the “actual” cost of your home. The rest is interest.

The longer you wait to buy a home and lock in a mortgage rate, the more money you’ll end up paying in interest over the life of your loan.

The Pros of Buying New Construction in the Fall

Beyond the financial burden of waiting to buy a home, there are other reasons why you may want to consider making a move sooner rather than later.

One big reason is that as summer is coming to an end and the new school year begins, there tends to be less buyers in the market. Less competition means you’re more likely to get the home and home site you desire.

Price increases tend to slow down in the fall and the builder may offer more incentives that aren’t offered during the spring rush. Also, if you’re looking to move quickly, builder’s are motivated to sell inventory homes before the end of the year.

If you are building from scratch, your new home will likely take 6 to 9 months to build. So, buying in the fall allows you to plan the move to your new home in late spring/early summer to coincide with the end of the school year. And, if you have a home to sell (providing your contract is non-contingent), you can benefit by waiting to put your current home on the market during the hot spring season.

How to Finance Your New Home Purchase

If you thought new construction homes were out of your budget, think again! Caruso Homes offers new construction homes at a variety of price points. From first-time buyer to retiree on a fixed income, we have a new home to meet your needs.

We make financing easy, too! With our preferred lenders, financing your new home purchase is simple. They can help you get pre-qualified for a mortgage so you know exactly how much home you can afford.

When you partner with our lenders, you get exclusive access to competitive interest rates, low origination costs, and a streamlined process from application to closing. Your experience is important to us, so we make sure the financing process is as stress-free as possible!

Caruso Homes Quick Move-in Homes

If you’re thinking about buying a new home, now is a great time to do it! Caruso Homes has many quick move-in homes available in desirable locations throughout Maryland, Pennsylvania and North Carolina.

From townhomes to single-family homes, we have a new home that will fit your needs. Plus, they are all built with the quality and craftsmanship you’ve come to expect from Caruso Homes. That means no need to worry about upgrades and repairs like you would in a pre-owned home.

Because these homes are readily available, you could be moved in before the holiday season! So if you’ve been waiting to buy a new home, now is the perfect time to act.

For more information on our new construction homes, financing options, or quick move-in homes, contact us today! We’ll be happy to get you started on the path to homeownership.