WHEN IS A GOOD TIME TO BUY?

Posted by Gregg Amaral on Sunday, October 7th, 2018 at 1:00am.

Knowing when to purchase a home is a big decision, one that people tend to almost spend too much time on. There are a lot of things that determine when is a good time to purchase your next home. People tend to ask when is the best time to buy a house? Does such a moment exist when all lights turn green, guaranteeing this is a decision you won’t regret? While there is no crystal ball in the real estate world, there are some signs that will determine if you are ready to purchase your first or your next home. Let’s check out some of these details.

DOWN PAYMENT
For most people this is the biggest factor when determining if it is a good time to purchase a home or not, as well it should be. Determining first and foremost what you have available for a down payment is a big fact. Most banks nowadays do require a good sized down payment for a conventional loan, however, it may not be as big as you would think. Most people think 20% down is traditional which is not true, 20% down payment is good if you have it available as Private Mortgage Insurance is required for anything less than a 20% down payment which can tack on an extra couple hundred dollars per month. However, a lot of conventional loans today only require 3-10% down payment. You read that right, it is possible to purchase a home with only 3% down payment.

MONTHLY PAYMENT
Your monthly payment is a big factor as well. How much can you afford? That is a question that you and your lender will be able to answer. Finding a trustworthy lender is a big factor and once that is accomplished you can determine what you can truly afford to pay monthly while still being financially secure.

CREDIT SCORE
our credit score is a factor that could possibly be the biggest determining factor. Your credit score will determine what your monthly payment will be as well as what your down payment will be. A good credit score can allow you to obtain that 3% down payment with a conventional loan. As you can see your credit score will determine the lifeblood of your mortgage so checking your credit score regularly and staying on top of things is a huge aspect in the home buying experience.

Finances are the biggest aspect of determining when to purchase your next home. It will determine all the vitals of your mortgage and ability to pay back that loan for your dream home. Market conditions are big factor as well, however, we will touch base on that next week. Finances are the aspect that can potentially hinder most potential buyers for their purchase.

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