If you're thinking about buying a home, it's important to know whether it's a good time or not. There are many things to consider when you are thinking about buying a home in today's market. You don't want to figure out it's not the right decision for you after you've started the process, or worse after your offer has been accepted. It's easy to get caught up in the excitement of the purchase and confuse that for the right decision. And yet once it's carefully thought-out, buying a home is a great investment. So here are some things to consider.
Look at your finances
To determine whether it's a good time to buy a home, one of the first things you should do is take a look at your finances. A great way to do this is by creating a budget (either on paper from us experts, one you have created, or in an app). You can also partner with your Realtor and Lender. Our team finds it to be a crucial step in the home buying process to have an open conversation and detailed plan for financial affordability when deciding to buy a home.
Once you've established how much money you earn per month, add up all of your monthly expenses—rent or mortgage payments; utilities; transportation costs; food costs; and any other recurring expenses. If these expenses exceed your income, then it may be best not to purchase a house until they're more manageable or stable. You'll also want to make sure that there are no changes in income coming up that would affect the stability of those payments (a raise at work, getting laid off from your job, etc.). If there are such changes coming up but they're still within reason for both parties involved (i.e., someone gets their dream job in another state), then it might not affect the decision as much if everything else checks out okay.
You also need enough money saved up for closing costs as well as down payment and/or closing fees when buying property with seller assistance programs like VA loans or FHA loans - depending on what type of loan program works best for you personally!
Consider the timing
Now, timing is a tricky thing to get right. Knowing the market in your area of where you want to buy and determining your needs and wants will be the key. And since every market is unique, your realtor can help you figure out if now is the best time for you. If you're thinking about buying a home in the near future, talk with your local realtor for guidance on whether now is an ideal time to do so, or if it's best to wait it out a bit.
Make sure you’re ready for the commitment
Before you commit to a mortgage, make sure you’re ready for the responsibility. Here are some things to consider:
You will have to pay property taxes and insurance on your home.
Unlike renting you will also be responsible for maintenance and repairs in the future. This may include fixing broken fixtures or broken appliances, as well as painting if needed.
And finally, utilities such as electricity, water usage, and more.
Keep an eye on mortgage rates
If you're concerned about the direction of mortgage rates, it's worth keeping an eye on them. If you can wait to buy a home, there's a chance that interest rates will drop. Your lender will help with timing this out. If you've already decided that now is the time to buy, or if your timeline for buying a home isn't very flexible, then it might be best not to wait around for any more potential changes in mortgage rates.
It's difficult to predict precisely what will happen with the cost of borrowing money over the next few months or years. However, if you’re looking at buying property soon and are concerned about how much rate hikes could impact your decision-making process—or simply want some reassurance before making an offer—it may be worth checking again closer to when you plan on settling down in your new home. Remember a great lender and realtor partner can give you additional information on plans that could help overcome a high rate.
The only person who can tell you if it is a good time to buy a home is you.
The only person who can tell you if it is a good time to buy a home is you. It is important to be prepared for the commitment and know your finances, market conditions, credit score, and have a professional as your realtor. You need to do your homework and be ready before going out there and buying a home.
The only person who can tell you if it is a good time to buy a home is you. As long as the numbers work and you can afford the mortgage payments, then buying a home in today’s market just makes sense. The key is to do your homework before signing anything—and don’t forget to get pre-approved for financing before doing any serious house hunting! As local experts our team of buyer's agents are happy to explain the process and help you develop a plan to reach your home ownership goals. Don't forget, it's never too soon to start exploring.