Timing is Everything – When to Purchase Your New Home
Timing is everything and buying a new home or property is an exciting, yet overwhelming experience if you are not properly prepared. Despite what you might think, timing your purchase can make the process much easier. While there is no crystal ball in real estate, there are some things to consider before you start the buying process.
Most of the time, purchasing a home or property comes down to the dollars and cents of the process. There are several pieces in this equation that need to be considered.
- Down Payment – You will probably require a mortgage to purchase a home or property. Typically, mortgage lenders will require a down payment before they will lend you the balance of the buying price. This generally equates to 20 percent of the home’s price. In the case of a $300,000 property, you would need to have $60,000 set aside before you start the process. There are programs that offer assistance for first-time buyers and some lenders will require less capital upfront.
- Mortgage Payments – The monthly mortgage payment you can afford is determined by your monthly income compared to your outstanding debts. Your monthly mortgage payment will also be dependent on the interest rate you are paying on the loan.
- Credit Score – Your credit score will determine a lot about your home mortgage, including the amount you will be allowed to borrow as well as the interest rate you will receive.
In addition to what you can afford, the specific circumstances of your housing market will play into when the time is right to purchase. While there are no definitive guarantees, there are a couple of market considerations that should factor into your decision.
- Inventory – The number of listings on the market, as well as the length of time they have been sitting, will play a big part in the asking price. A low inventory bodes well for the seller, while a full inventory works more in the buyer’s favor.
- Interest Rates – The rate of interest on your loan will determine your final monthly payments. When rates are low, it offers more incentive to buy.
Are you considering purchasing a home in Sumter, South Carolina or surrounding communities? Contact Berkshire Hathaway HomeServices John M. Brabham Real Estate to find the perfect home for you and your family.