Getting your timing right for buying a home is vital. Generally speaking, the best time for buying a home is when you are ready both emotionally and financially. Some other factors also govern the timing when you buy a home. If you time your purchase properly there is every chance that you will grab a home that is perfect for you. Buying a home is one the largest financial transaction you will ever make. Certain times of the year will impact the mortgage size you are going to need and the amount you are required to spend on it. It also will decide the kind of property you can afford.
The Best Time to Buy a Home: The best time to buy a home is in late summer or during the fall. Home shoppers can find several homes available in the market but without too much competition for the purchase. But in the spring and early summer, many buyers are looking for a house. So you are more likely to get a bargain in the late summer and fall. Most home sellers will cut the prices with the back-to-the-school time approaching as they are nervous that they will not get the home sold before the winter arrives and buyers move to hibernation. It means that you will find the highest number of home listings in August and September with at least one price reduction.
Mortgage interest rates: There are several home buyers out there who are trying to time the purchase by monitoring the interest rates available and pouncing on the lowest available rates. However, these interest rates are similar to the stock market and it is nigh impossible to predict whether they will rise or fall. Again, what is considered as the interest rate is relative. Today the interest rates are lower than what they used to be 20 to 30 years ago. Mortgage rates drove up to nearly 19% as US Federal Reserve made a frantic effort to counter the rising double-digit inflation. These rates dropped below 10% by the end of the 1980s. They continued to drop over the years and today the federal interest rates are near zero.
You also need to remember that your credit score also affects the mortgage interest rate at any given time. Fluctuation in property taxes, homeowner’s insurance, and other home ownerships cost also can make alterations in the interest rates. Therefore, the current interest rates play a near insignificant role at the best of times for buying a home.
Your Financial Considerations: What is the situation with your credit score? Can you afford the monthly mortgage payments? Do you have sufficient cash for the down payment and closing costs? You should sit with professionals who will help you in evaluating your finances. You will also have to be on good financial grounds with a stable job to support you and buying a home can lower the monthly housing costs. If you are thinking about building a home instead consider the services of the semi-custom home builder Vitale Homes.
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