How Do I Know If It Is a Good Time to Buy Home?
Purchasing a home is going to be one of the most important decisions you will ever make. Knowing when to buy a home can help save you money and keep you free from stress. While some base their decision solely on when they have the money to afford a home, there are other factors that will need to be taken into consideration before you make the purchase.
Watch the Market
Pay attention to the real estate market in the area you’re looking to purchase a home. If you notice that the house prices are increasing, chances are you should begin looking before you end up paying high prices. However, one would think that if prices are falling you should immediately jump on it. Contrary to popular believe if the prices are falling fast you will need to wait.
Tax Credits and Loans
You should check out the government as well. First time home buyers who purchased their home between the years of 2008-2009 were able to obtain 15 year interest free loans funded by the government for approximately $7500. Since this is not a usual occurance, paying attention to when it might best benefit you is important.
You may or may not be aware that often lenders will want homeowners to put down a minimum of 20% of the overall cost of the home. If you do not have the down payment together, chances are you should wait to buy.
How’s Your Credit?
Another factor to consider is your credit rating. Just because you can obtain a home loan does not mean it is the best opportunity to buy a home. Those with damaged credit scores will pay much more in interest and are often not approved for the amount they would like.
What Are the Mortgage Rates?
You should shop around and pay attention to the trends in the mortgage rates. As lenders strive to improve the housing market, they will often offer decent interest rates for those who qualify. Waiting until you can get a great deal on a mortgage is a plus.
Timing is Everything
Spring is typically the busiest time of the season for realtors. There are lots of homes out there and lots of buyers looking to purchase meaning you will likely be met with a lot of counteroffers and thus will have to pay market value for a home. Waiting until the Spring season has passed can save you some money and allow you to get the home that you really want.
In closing, buying a home is something that should not be made without some serious thought. There are a lot of costs involved in a home, a lot of mishaps that could occur, and all of it can end up costing you big. It is also important however to understand that there is essentially no 100% perfect time to buy, you just have to be able to afford it and pay attention to the above factors to get the best deal on the home of your dreams.