You may know you want to buy a home, but timing is everything. For such an important decision, you have to consider when exactly the right time is.
It is impossible to pin point the exact perfect time for anyone to buy a home, but there are a few valuable questions to consider when determining: when is the best time to buy a house: right now, or wait?
Consider these three questions while deciding when to buy a home:
Your Financial Situation
When you are buying a home the first and most important thing you need to consider is if you can afford it! You must consider the following:
- Being able to put down a down payment – down payments on homes are typically 20% of the home value. This is money you must provide upfront and must be able to front before moving in. If you can’t commit to this large sum of money you may consider taking some more time to save up.
- Affording a mortgage payment every month – on top of the down payment you must consider the monthly mortgage payments. Can you afford to pass off a few thousand dollars every month?
- Your credit score – one last financial item to consider is your credit score. Have you paid off debt in the past? Can lenders trust and rely on you? Having a good credit score is very important when buying a home in order to ensure you can be approved for the mortgage.
Conditions of the Real Estate Market
Like a lot of things in life, the real estate market is constantly changing. Sometimes are better to sell and sometimes are better to buy. Talk to your real estate agent about the local real estate market conditions to determine when would be the best time to commit to buying a home.
When the buying season is slow you oftentimes have more negotiating power, this is something to look out for! Here are some items to consider when looking into the real estate market:
- Quantity of available listings – if houses have been sitting on the market for a while then chances are prices should be down and you should have the negotiating power. If houses are selling quickly then now may not be the best time for you to buy if you are worried about financing.
- Mortgage Interest rates – The rates on home loans are constantly fluctuating and impacting the conditions of the market. Again, if you are worried about finances then you want to make sure to buy at a time when interest rates are lower.
- Buying vs. Renting – another factor to consider is whether you want to buy or rent. There is nothing like owning your own home, but sometimes it helps to rent first and take some time to save up more and be fully ready to make a financial commitment when you do decide to buy a home.
The Time of Year
A lot of people move during the spring and summer months that ore often less busy then fall when school is starting or winter when the holiday craze takes over. Although this has credit to it, you should be aware that buying during these times can give you more of a competitive edge. Consider what you are looking for and how the seasons can affect your purchase.
Do you have a track record of moving from place to place and never settling down? Buying a home brings on a lot of additional costs that may not be suitable for your needs if you aren’t looking to stick around for the long haul. When buying a home, consider how long you want to stay in the area and whether it would be a good idea to purchase a home in that area.