When Is The Best Time To Buy A House, And Why?
It’s often said that the best time to buy a house is when you can afford it. For better or worse there are other factors to consider, too. The present economic situation and the condition of your local housing market should provide a backdrop for your decision. Other things to consider are your financial state, dreams, and whether you’re ready to become a house owner. So, is it a good time to buy a house? Read on to find out.
When is The Best Time to Buy a House?
Thrive Lending Group takes a look at when to buy a house based on market trends, your personal situation, and more. Here’s a look at some of the things you should take into account when trying to decide if now is the right time for you to buy a home.
The Market Outlook
The current state of the economy and the housing market are big factors in deciding whether now is a good time to buy a house.
Soaring Mortgage Rates
You need to look around and compare mortgage rates from multiple lenders to get the best deal. You also need to ensure that you can afford the monthly payments, even if rates go up a little bit more.
Demand For Homes
There’s a seller’s market for houses right now. The decrease in available listings has resulted in more people competing for the same homes, driving up prices. In some markets, bidding wars are commonplace. You might have to offer more than the asking price to get the home you want.
Rising Home Prices
Home prices have been on the rise for the past few years. This is good news if you’re a current homeowner, but it makes buying a home more difficult.
If you’re thinking about buying a house, you need to make sure you can afford the monthly payments and have enough saved up for a down payment.
Tough Credit Requirements
It’s harder to qualify for a mortgage now than it was a few years ago. The stricter credit requirements are a result of the subprime mortgage crisis.
To get a mortgage, you’ll need a good credit score and a steady income. You might also have to come up with a larger down payment than you would have a few years ago.
Are You Ready to Buy a House
If you’re thinking “is it smart to buy a house right now?”, answer these questions to determine how ready you are.
Do You Want to Plant Your Feet in a New Home?
The first question you need to ask yourself is whether you want to buy a house now or wait a while. Do you see yourself remaining in the same place for several years? You should at least be willing to remain in the home long enough to recoup the costs of buying and selling.
Is Your Job Secure?
A stable job is one of the most important factors in whether you’re ready to buy a house. Lenders want to see that you have a steady income before they’ll give you a mortgage. Is it a bad time to buy a house? If your job security is low, the answer is yes.
If you lose your job, your mortgage may become difficult to afford. You should feel confident in your employment situation before buying a house.
Are You Financially Ready?
Here are three key questions to ask yourself:
You need to have a down payment saved up before you can buy a house. You also need to be able to afford the monthly mortgage payments and other associated costs, such as homeowners insurance, property taxes, and repairs.
To get the best mortgage rates from lenders, you need to have a good credit score. If your credit isn’t in good shape, it could take some time to improve it. Generally, a credit score of 740 and above is considered good. A score of around 600 and above is okay while anything below will only have a slim chance of getting approved. If your credit score is low and your question is, “should I wait to buy a house?” The answer is probably a yes.
Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward debts, such as credit cards, car loans, and student loans.
For a conventional loan, you should aim for a DTI of 36% or less. This means that no more than 36% of your gross monthly income would go towards your debts each month.
What Time of Year is The Best For Buying a House?
Are you wondering when is a good time to buy a house? What you should look out for is a period of high supply and low demand. While it can be hard for you to be on the lookout for this, your real estate agent will know when this happens. That is why it helps to have a professional on your side who knows when the market is right for buyers.
The best time of year to buy a house is typically in the fall. This is when there are more homes on the market and fewer buyers competing for them.
While both demand and supply are low in winter, you may not want to move in the snow unless you have to.
It can be difficult to find a home during this season as well since many people take their homes off the market during the winter months.
The spring housing market is when things start to pick up again after the winter lull. This is when you’ll start to see more homes on the market as people put their houses up for sale.
However, you’ll also have more competition from other buyers who are looking to take advantage of the warmer weather and the increase in inventory.
It’s also a good idea to avoid buying a home during the summer. This is when demand is at its highest and you’ll likely have to compete with other buyers who are looking to take advantage of the good weather. However, if you find your dream home at a reasonable price, don’t hesitate to make an offer.
So, when is the right time to buy a house? Well, the best time of year to buy a house is typically in the fall. This is when demand for homes is lowest, which gives you more negotiating power with sellers. It’s also when mortgage rates are usually at their lowest. So if you’re looking for the best combination of low prices and low mortgage rates, fall is generally the best
Also, most families have settled into homes in preparation for the new school year, which means there are typically more homes on the market during this time.
If You’re Ready to Buy a House, Contact Thrive Lending Group
If you’re thinking about buying a house, now is a great time to start the process. At Thrive Lending Group, we offer a wide variety of products to fit your needs. We also have a team of experienced loan officers who can help you navigate the home-buying process. Contact us today at 949-228-9902 to get started.