Is Now A Good Time To Buy A Home? The truth is, this is the wrong question to ask.... I think the better question is, does it make sense for me, in my current situation, to buy a home?
We believe that regardless of season or market trends determining a good time to buy can vary based on a variety of factors.
Do You Have The Money?
Buyers need to know if they comfortably pay for a mortgage, homeowners insurance, homeowners association fees, and taxes. We recommend that you contact a loan officer to get a preapproved for a Mortgage. They can lay out your options and help you determine what you can comfortably afford. Many professionals recommend that housing costs never exceed more than 28% of gross income and your total debt should be less than 36% of gross income. Do you have a money for upfront costs such as the downpayment and closing costs? Can you write an earnest money check? Closing cost can often be wrapped into a loan and there are options that allow you to finance 100% of a home but a down payment should always be the goal. Its also a good idea to set money aside for an emergency fund or post-transaction cash.
How Long Will You Stay?
One of the most important factors to take into account how long do you plan to live or own the home. Elements such as job security, changing careers, or pursuing an advanced degree can have a big influence on this. Your time frame matters because there are a fair amount of costs involved when buying and selling real estate. The longer you plan to own a home and realize price appreciation will help to offset any transactional costs. Don't stress about figuring out these answers alone though. We can help you put a plan in place for a future purchase.
How's Your Financial Picture?
Aside from having the money to pay for a home, a strong financial position is also important to appear as a more qualified buyer to sellers and most importantly to qualify for the best mortgage rates.
So, what's the answer?
Well, when determining when the best time for you to buy may be much more important than deciding whether home prices are "on sale."
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