“When is the best time to buy a new home?” This is a question that we not only get asked often, but it’s also a popular google search topic. In our own opinion, the best time to buy a new home is when you feel ready. Buying a home is a big financial investment, but it is also one of the best investments that you can make. So how do you know when you are “ready” to buy a new home?
Are your finances in order? How much credit card debt do you have? How about auto loans, student loans, or personal loans? If you are forced to use a credit card because there seems to always be more month than money, don’t buy a house. How about your credit? Your credit score is the number a bank uses to determine how well you handle credit. Having a terrible credit score is a huge red flag!
Have you saved enough for a down payment? Your down payment on your first home will most likely be the single largest investment you will ever make. Don’t forget that you will also want to save money to furnish and decorate your new home. There is nothing worse than buying your dream home and not having any money left to decorate with!
Can you really afford the payment each month? Don’t forget about the costs associated with owning a home. Property taxes, insurance, city assessments, water and sewer, and of course maintenance costs.
Can you fix a leak? Being a homeowner means you are in charge of your own problems. This is probably the biggest difference from being a renter. You will no longer have the luxury of calling your landlord when you have a leak, or a plumbing issue. When you are the owner you have to either have the ability to fix the problem yourself, or have the resources to pay others to fix them.
Having the financial stability that allows you to afford your own home is an accomplishment and something to be proud of. Just make sure that all your ducks are in order before taking on this great responsibility!