5 Ways to Know If Now Is The Right Time to Buy My First Home
If you follow real estate, you may be asking, “Is now the best time to buy a house, or should I wait?” The answer might surprise you. We will go over the top 5 ways to know if you are ready to buy a home. Historically, the cost of homes has appreciated over time and some real estate data points to that trend continuing. Subsequently, rents will continue to rise as well. Overall, you must decide for yourself if now is the right time to buy. Let’s look at the 5 key points to help you make the right decision for your life.
Rents Continue Rising
You’ve been living in a rental for a bit now and chances are the monthly rental rate continues to increase. Rising rent is where many people are feeling the squeeze of inflation. In fact, according to cnet.com rents rose 17% nationwide from 2021-2022. This is a huge increase! If you take an average monthly rental payment of just $1500/month and you pay that for 5 years, that is $90,000 in paid rent! That money is better spent on a home where you can build equity, right?
Credit and Work History are Solid
There are three main components to buying your first home. We will go over the first two in this paragraph. Creditworthiness and job history make up two major factors in the home-buying and loan approval process. If you have a minimum credit score of at least 620 coupled with good job history, this might be the time for you to buy a home. Life stability is one of the most important roles in successful homeownership.
You Have $1500 for a Down Payment Saved
The third factor in deciding if now is a good time to buy a home is having the required $1500 for a down payment. If you have never owned a home before or have not owned a home during the last three years, you might qualify for the WCDA First Time Home Buyer Program. Unlike rental deposits, this money goes towards your very own home.
You Know What You Want
When you rent for a long enough period of time, you will learn the most undesirable aspects of renting; what you really desire in your dream home. You may be looking for a home where you can have a yard for your kids to play in or for a beloved pet to run. You may need more bedrooms with an attached garage or more entertaining space, the list goes on. The point is, you know exactly what you want. In fact, you probably know what not to look for in a home; thin walls, location, exterior flights of stairs to climb, no garage, no way to have a garden, etc. The list literally goes on! You desire a fixed monthly payment that you can comfortably afford and yet, still build your own equity, right?
You Have Enough Set Aside For Home Maintenance Costs
Maybe you are worried that you won’t be able to afford the mortgage payment and the home expenses associated with homeownership. Is it possible that you have been paying for maintenance costs built into your monthly rental payment? The answer is yes. Landlords add the cost of principal, interest, taxes, insurance, and maintenance into the monthly rent payment. It is important to understand the monthly costs and expenses. In addition to your monthly mortgage payment and utilities, you may have repair and maintenance costs. An example of these costs are; if hot water heater goes out and you need a replacement, a pipe leaks and you need to hire a plumber, a dishwasher needs to be repaired, keeping up with the maintenance of the home; painting, gutters, drainage, etc. Having savings built to combat this cost is a way to help offset any future unforeseen costs.
Furthermore, having a trusted Real Estate Team guide you through your home-buying process to be your advocate and help you get your home inspections/repairs negotiated prior to closing is a great way to protect yourself from future costly repairs to a home.
Is Now a Good Time For You to Buy A Home?
So, circling back to the question, “Is it a good time to buy a house for first-time buyers?”, if you answered these questions with ease and confidence, then it might be the best time for you to take the first steps toward homeownership! There is nothing greater than being a homeowner. With homeownership comes freedom, control, confidence, pride of ownership, wealth building, and many more positive attributes. Contact your experienced real estate advocates, The Putzier Real Estate Team for a hassle-free, easy consultation today. Don’t forget to download your free home buyer checklist. Give us a call and enjoy the home-buying process! We cannot wait to talk to you!