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  • Writer's pictureLuis Sanchez

When Is the Best Time to Buy a Home?


Hey home buyers, looking for the right time to put in an offer on your dream property?

Many buyers consider the spring and the summer to be the best times to buy a home. Spring is usually considered to be the beginning of the home-buying season and undoubtedly it is a busy time of the year for buyers, sellers and anyone involved in the real estate industry. But home sales tend to really heat up in the summer.

While there's no crystal ball in real estate, there are a few signs that will help indicate if the purchase of a home is something you should consider. Let’s hit the ground running and briefly touch on some key factors that can influence whether the time is right.

Your Finances

Many people often know that when purchasing a home, it all comes down to the numbers.

• Down Payment: As you may already know any lender you reach out to for mortgage assistance will want you to show them the gold- that is, have a substantial down payment. However, there are lenders out there that will lend money with as very little as 5% down on a conventional purchase or even a 3.5% down with FHA financing. Depending on where you are purchasing your home you may qualify for down payment assistance programs.

• Credit Score: While lenders look at your income, debt and savings when making mortgage decisions, your credit score is the biggest factor in determining whether you get approved or rejected for financing. If you haven't already requested a copy of your credit report you need to do that fast. Lenders will want to see your credit "worthiness” (lenders typically want to see at least a year of positive payments under your belt). If your credit score is poor, you may want to consider doing what you can to raise it up. Overall a higher credit score will get you a better interest rate which means a lower monthly payment.

• Monthly Mortgage Budget: A person can have the highest credit score out there and may still be having difficulty when applying for a mortgage loan. How much a person is able to afford in a monthly mortgage is often determined by the amount of income a person makes vs the amount of debts a person also has. If your current income is high but your debts are even higher you will need to work on lowering your debt to income ratio.

Bottom Line

Often while trying to figure out when the right time to buy a home will be, you will hear things like: "it's best to buy a home when you are able to afford making the purchase" or "If your credit score is not high enough and you don't have enough money for a down payment in the spring or in the summer you may need to wait a few months before applying for a mortgage to purchase a home." I personally would advise anybody to go out and apply for a mortgage loan today. I say this so you know where you're currently standing and if there is room for improvement here is your opportunity to make the necessary corrections. Who knows you may even be qualified to purchase today and don't even know it!

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