When is the Right Time to Buy a Home

When is the Right Time to Buy a Home

You might be one of those people who are still renting and have been saving up to buy your own home. But just when is the right time to buy a home? Just because you are saving up so that you can stop renting does not mean it is the right time to purchase a home.

There are various factors to consider, such as the season, interest rates, and the current economic situation. But first, there are two prerequisites. First is when you have the proper finances; and secondly, when you believe it is the right option for you. It is advisable to discuss this with a financial advisor when you are deciding to buy a home, as it will probably be the biggest acquisition you will ever make in your life.

If this is your first home, you have to calculate what your probable return of investment will be, plus the carrying cost of owning a home. Low interest rates entice buyers to buy, as they make housing affordable. This also makes it easier for them to be eligible to avail of a mortgage. Comparing how many thousands of dollars you will save from staying put in one place than continuously moving and renting, make sure to purchase a home that fits your long-term requirements.

Currently, interest and mortgage rates are low and will enable you to make more of a down payment of the principle in the earlier years of your loan. If you compute how much you will be paying at a quarter of a percent less interest early on, you will be surprised at how much money you end up saving.
Now, in terms of the season, some say it would be best to buy around wintertime, as there is less competition from other purchasers. This is because there are less people looking around so sellers would also be motivated to sell their homes at lower prices. In addition, you can see how the house holds up in this kind of weather, making it better to identify if any possible drainage or roofing problems.

Buying a home during summer is also suggested as agents and would-be buyers are out on vacation, thus again there is less competition. And if you have kids, this would be the best time to relocate so that you have enough time to get settled in before school begins.

Truth is, homes are being sold all year long. Interest rates go up and down, and timing markets is virtually impossible. Thus, when should one buy a home? We go back to the basics. When you have the funds and find a home that you like, and in your heart you know it is the right one, then go ahead and take that plunge. You will surely not regret it.