When is the Best Time to Buy a Home?

Some people have difficulty deciding when to buy a new home. If they have rented for several years, making the decision to buy can seem scary. Is there a way to know when it's the right time to buy? Should you wait awhile to buy? This article can serve as a super simple guide to help you come up with the answer. Here are four simple questions to help you make your decision.

1. How's your credit?

If you've got a good credit score, you won't have to worry about getting a mortgage loan. On the other hand, if you have struggled with a low credit score, you might want to wait. You will likely be able to get a loan, but you may have to pay higher interest rates and you may need to put more money down. Ask your banker if you are being penalized for your lower credit score before deciding to buy. 

2. Have you got a reliable income?

When you get the loan, you'll need to be ready to pay it back. Make sure that your income is steady and is enough to allow you to pay all of your bills and the new ones that you will incur with the purchase of a new home including utilities, home improvements, homeowner insurance, and more.

3. What's the market like in the area you want to buy in?

If prices are low, it could potentially be the right time. It's best to ask questions to make sure you are buying at the best time. If the market is really busy, you might end up paying more for a home.

4. What is the market forecast for the area you want to live?

The prices could be right, but are they predicted to drop? If they're going to continue to go down, you may want to wait. If the market might rise, it could be time to seize the opportunity.

After reading this, you should have a better idea of when to buy a new home. Some people are satisfied with their timing, and others have remorse. Be prepared when making the homebuyer's leap.