Is Now a Good Time to Buy OR Wait??
I’m being asked a lot these days..Is now a good time to buy a house, or should we wait?
I’m hearing other Realtors immediately say “Absolutely!, interest rates are historically low, your borrowing powers are elevated because it this. Do it now!”
While I totally agree with the low interest rate part of the general consensus, my answer to “is this a good time to buy” is not as blanketed as that.
Buying a home Is a major financial, and very personal decision.
Today I’m going to give you 4 signs to consider in order to personally figure out whether buying the home in the near future is a smart move or whether you might be better off waiting.
I hope you stay with me today because at the end of this short video I have a 100% FREE bonus for you that will save you money AND provide you with some tools you need to make even smarter decisions when buying a house.
You Have a Stable Employment History
If you’ve been on your job or have been doing the same type of work for at least the last 2 years. You may be ready to buy a house.
When financing your home, lenders will need to see w-2's, 1099’s and 2 years or tax returns.
This is their proof you have the income to make your mortgage payments and can continue to do so for the foreseeable future.
Do you have a handle on your debit? Meaning do you know your DTI number?
Your Debit-To-Income ratio needs to be 45% or less. If it is, you may be ready to buy a house.
Figuring out your DTI number is easy:
All you have to do is add up all of your recurring monthly debts like; credit card debt, car payments, and student loans, etc.
Then, divide that number by your total monthly income and multiply it by 100 to get your percentage.
(Total monthly payments ÷ monthly income) x 100 = DTI
If your DTI is over 45%, it’s worth focusing on getting a better handle on your debit before buying a house.
You Have a decent amount of money saved
If you have steadily saved on a consistent basis and have around 5% of the cost of an average house in the bank, you may be ready to buy a home.
Example: $300,ooo (home price) x 5% = $15,000.
Notice I said ‘steadily saved on a consistent basis’. A lender wants to see you have the capability to prepare, not only for the costs of the home, but of the on going costs of home ownership as well. Making a large deposit from a 3rd party is NOT what they want to see.
This is the bare minimum..There are other costs I involved.For complete details on the costs involved when buying a house, you’ll want to check out my earlier: video.
What’s Your Credit Score? And are you happy with it?
If you have a credit score of 620 or higher, you may be ready to buy a home.
There are some unique mortgage programs out there that can do a loan with a lower interest rate..But you’ll be paying a lot more for that home over time because you will not be getting a primo rate.
The higher your credit score, better the rate..Which means more house you can qualify for.
So you see, there’s more to consider when simply asking “is this the right time to buy a house”.
In it you’ll find money saving tips, and a step by step guide how to properly prepare for home ownership. Just click the link in the description to have instant access this valuable guide. Enjoy!
Im Lisa Kelly and until then, I’ll see you on the next one.