Low housing inventory and even lower mortgage rates have created a buying boom in many states—especially in California—over the past handful of months. But finance expert Chris Hogan, of Ramsey Solutions, warned Yahoo! Finance Live that perspective buyers fear of missing out could mean rushed sales that have longterm consequences.
“You’re seeing people are feeling this urge to hurry up and get something done for the sake of missing out,” Chris Hogan, a personal finance expert and spokesman for Ramsey Solutions, told Yahoo Finance Live. “There’s a process we need to follow to make sure buying a home ends up being a blessing more than a curse.”
Hogan’s tips to taking advantage of today’s hot housing market is three-fold:
- Get out of debt FIRST!
- Build up your 3-6 months emergency savings to cover living expenses
- Have a game plan for your home purchase, notably procuring a 15-year fixed rate mortgage and aiming for at least a 10-20 percent down payment
You can see more of Hogan’s conversation with Yahoo! by click through here.