When looking or thinking about purchasing a home, many people ask, “When is the best time to buy?” The answer is not a consistent one because each case is different; however, the most important factor is you, the potential home buyer. As a potential homeowner, you need to be ready for the financial responsibility of purchasing a new home. Home ownership is a commitment and you are the most important factor in determining the best time to buy a home.
Determining the best time to buy a house is controlled by several different factors. It depends on your locations, market demand, and your savings. Here are a couple scenarios for the best time to buy:
Many areas in the country offer help for those who are first-time buyers. They will give discounts or help with closing costs. Ask your realtor if there is a first-time buyers program within your area.
Interest rates are very low right now. If you find your house, talk with your mortgage company to see what they can offer you. Some people are getting around 2%, others a little bit higher than that.
See how much house you can afford. Everyone dreams of having an amazing house, maybe even a mansion. The problem with that is, it’s not realistic. Make sure you have an idea of what you can afford, or go talk with a mortgage company about what they’re willing to lend you to know how much house is within your price range.
If you are mobile and renting now, but you sometimes need to leave on short notice, the best time to buy may not be now. Owning a home is a huge responsibility and if you’re always gone, traveling a lot or your work is unstable, renting may be the best option for you now.
After understanding how much the bank will loan you and how much you can afford, look to see if the houses within your price range are in good supply so the prices are not inflated.
How much money have you saved? Saving money for a down-payment is not always necessary, but after you get into a 30 year loan with no down-payment, you’ll be looking at a hefty mortgage payment. Some people don’t care, others would rather pay it back as soon as possible.
When looking for your home, take little things into consideration as well. How long is the drive to work? How far away is the nearest grocery store? Things like this need to be thought about because it makes living easier. If you purchase a house and forget to calculate the time to work and suddenly you find it’s gone from 15 minutes to 45, that’s a huge difference. Remember the little things too.
Everyone’s best time to buy is different. For some, the time is now. For others, the time is in the future. Always contact a realtor for all of your questions or concerns when buying your home.