When to stop holidaying and buy a house?

Yu may be asking yourself, should I stop travelling and settle down. Buy a house perhaps? Well keep reading and ponder!

People will usually ask “when is a good time to buy a house” and the answer is it depends. It will rely on an individual’s circumstances and goals. But, if you are persistent to know, continue reading.

The location is a crucial factor to consider. Proper timing also has a significant impact on how much you will pay. Based on some research, October is the best month for home buyers. The best day is Monday, and the perfect date is October 8.

  • According to RealtyTrac, most homes that were purchased in October have a 2.6% discount from the current fair market value. Realtors also advise their clients not to sell their home until spring while they tell home buyers that it is a great opportunity. It is because most home sellers are motivated to sell their property through the holidays which is off-season
  • There is less competition during this time since fewer buyers are in the marketplace. Aside from October, the best months would be February, July, December and January which is according to statistics.

Peak season includes spring and summer. Some will advise you to buy a house during this time since you will have more options. However, it also translates to tough competition and higher prices. That is the reason why others think that fall and winter seasons are the best times for home shopping.

Aside from the numbers above, timing is crucial when it comes to this life-changing purchase. The statistics won’t help if you don’t consider the following factors before pulling the trigger.

FINANCES – apparently, this is the biggest part of the equation. Make sure that you have the following;

  • Downpayment (DP) – you need to have a sizable down payment before lenders allow the mortgage that you want. While some can require you as little as 5% DP, other will ask you to scrape 20% of home’s value. You can also check some down payment assistance programs to see if you are qualified.
  • Monthly Mortgage- how much mortgage you can afford? If you have a higher salary but also have a higher debt, it could be a not so good sign. There are mortgage calculators online where you can check if you can plug in your income and debts for the monthly mortgage.
  • Good credit standing- your credit score will measure how efficient you are in paying your past debts. Remember that lenders take this numbers seriously and increase your chance to land a higher loan. If you don’t have a credit history, get it now. Lenders prefer to see at least one year of payment.

MARKET CONDITIONS- like any other business, housing markets have its highs and lows. It is impossible to find the perfect timing, but still, the market conditions can give home buyers a little incentive. Try looking through listings in your area.

In general, houses that are on the market for more than six months means the market is slow, so the prices are steady. But, if the properties were bought in weeks or months, expect for buyer bidding wars which tend to drive up the prices. Likewise, the interest rates for home loans fluctuate according to the market conditions.