At KCI, we love the joy people get from being handed the keys to their very own house. A place where they can feel secure and live and grow. It is why we do what we do. That being said, owning a home is a big investment and because the housing market changes based on a variety of factors, some like to argue that certain times are better to buy than others. So how can you know whether it is a smart time to buy or not? Here a few questions that you can ask yourself to figure out the answer for you.
One of the biggest and most obvious factors to consider when discussing homebuying are down payments. Having enough money saved to be able to put down a comfortable down payment, cover closing costs, as well as have the recommended cushion of cash to cover 6 months of living expenses in case of emergency is what is going to set you up for success. So, the first question to ask yourself when deciding if it is a good time for you to buy is, “how are my savings?”
Another factor that will help you to decide if now is the time for you to buy a home is to get pre- approved. Find a lender you trust and run the numbers with them. Depending on your credit score, (640-740 is ideal) your debt-to-income ratio, and interest rates, a lender will help determine how much home you can afford. Of course, it is important to keep in mind that lenders will offer you a loan based off your gross monthly income (before taxes are taken out) and not your net monthly income. So be mindful of that and be reasonable in evaluating if buying a home is right for you after considering this and meeting with a lender.
A lot of people approach buying a home as a financial investment. And it can be. There are some markets, like in California, where the housing price has consistently increased year after year. For most markets, you should look to stay in your home for around 5 years before you consider selling to make a decent profit.
Most markets naturally have an ebb and flow, though. Housing prices may rise and fall depending on several factors. But if you are not looking to get into flipping houses or renting them, what you should ask yourself is, “do I really want a home?” A home can offer you a safe place to live and grow without having your mortgage rate increase year after year as it does in rentals. It can offer you a place to make memories and put down roots. But it will also require repairs which could cut into other things you enjoy, like traveling.
So really, the answer to “when is the best time to buy a house?” all depends on your personal circumstances and desires. Ask yourself these questions, and if you decide that the answer is now, give KCI Homes a call. We would love to help you.
By KCI Homes 2-23-2021
Recent:
Categories
Archive
Dec 2024
Nov 2024
Oct 2024
Sep 2024
Aug 2024
Jul 2024
Jun 2024
May 2024
Apr 2024
Mar 2024
Feb 2024
Jan 2024
Dec 2023
Nov 2023
Oct 2023
Sep 2023
Aug 2023
Jul 2023
Jun 2023
May 2023
Apr 2023
Mar 2023
Feb 2023
Jan 2023
Dec 2022
Nov 2022
Oct 2022
Sep 2022
Aug 2022
Jul 2022
Jun 2022
May 2022
Apr 2022
Mar 2022
Feb 2022
Jan 2022
Dec 2021
Nov 2021
Oct 2021
Sep 2021
Aug 2021
Jul 2021
Jun 2021
May 2021
Apr 2021
Mar 2021
Feb 2021
Jan 2021
Dec 2020
Nov 2020
Oct 2020
Sep 2020
Aug 2020
Jul 2020
Jun 2020
May 2020
Apr 2020
Mar 2020
Feb 2020
Jan 2020
Dec 2019
Oct 2019
Sep 2019
Aug 2019
Jul 2019
May 2019
Mar 2019
Jan 2019
Oct 2018
Jul 2018
Apr 2018
Dec 2017
Nov 2017
Oct 2017
Aug 2017
Jun 2017
Mar 2017