The most common question for first-time homebuyers is when is the best time to invest in a property. The truth is, knowing the right moment to buy a house entirely depends on you. Your finances have little to do with market predictions, so you have complete control over your housing decisions. But it’s also important to pay attention to other things, like how the market is doing. Since buying a house is one of the most important decisions, you have to keep an eye on the housing market to get the best deal possible.
According to a recent market survey by ofirio.com, home prices and mortgage rates have gone up by 20% due to high construction materials. Taking this into consideration, here is what you needed to know about determining the best time of the year to buy a home.
The Process of Buying a House
The ability to buy a house depends on several conditions. From how good your credit score is to the type of mortgage loan you pick and your available down payment, you can qualify for a loan with a credit score of at least 640. But the best rates require credit scores of over 740. Going for a 30-year fixed mortgage rate is the best option, as it protects you from any unforeseen future risks. It’s even better now that the 30-year fixed rate dropped by 0.59%, a fast 3-week decline for the last two decades, according to Freddie Mac. As time goes by, the mortgage rates will also go down.
The kind of loan you qualify for also depends on your credit score. A good credit score qualifies you for a great loan with lower interest rates. Ensuring you apply for a mortgage pre-approval will enable you to know your limits of home search. It is possible to get your dream home even when you don’t have a 20% down payment. Becoming a homeowner in the US is easier, as the government offers several mortgage programs, whether you have a down payment or not.
When Is the Best Period to Buy a House?
Nailing down a specific season that’s best for buying a house depends on the perks the season comes with. For a buyer whose budget is limited, this might be the best choice. Winter is often the best season to purchase a property because of the festivities around that time. Buyers are mostly few in the market, and home sellers rarely do listings. Those who do offer lower asking prices are motivated to present enticing contingencies that aid a speedy closing process.
The real estate agents who open houses during this time are eager to seal the deal as soon as possible, and lenders process your applications faster. This means you can buy a great home at a lower price than you would during other seasons of the year, among other benefits the seller might throw at you. If you live in a country with extreme snowstorms, the season might not be encouraging for house hunting. Other challenges include difficulty in inspection since the inspector might overlook some areas of the house.
However, most sellers put their homes on the market during the summer and spring. This gives you a broader selection of home choices to pick from. There’s lots of available inventory and stiff competition from other homebuyers. In the summer, home prices tend to go up since many potential buyers are on the market.
To get the best deal on homes with amazing features, you must be ready to give a good upfront fee and not expect any sweetened contingencies from the seller. The level of competition you face also depends on the location of the property you are buying.
Buy a House When You Can Afford It
Are you comfortable with the current housing market conditions and ready to take ownership of a property? Now is the right moment for you to start keeping an eye on houses for sale. Property prices vary from state to state, so look at the market trends in your area. The best time to buy a house is when you are ready and have all the available things for the purchase. If you have your finances in check and purchasing a house is your goal, then it doesn’t matter the season of the year.
You must ensure your credit score is in line and you have a consistent income. Seek professional advice from a local mortgage expert to help determine the kind of loan you can afford. According to Simon Glenn, a mortgage broker in South Carolina, a mortgage loan officer will help you weigh your goals and financial history and determine your actual income, assets, and liabilities.
This will help create a budget and determine the maximum purchase amount you can qualify for based on your credit history and debt-to-income ratio. Other essential aspects are going with a local lender and picking the right agent to ensure a smooth closing process.
