Considering when to buy a home is a personal decision that goes beyond macroeconomic factors like housing prices and mortgage rates. It’s also about where you want to live, what your family’s needs are and how long you plan on staying.
But in the current environment, it’s easy to feel dissuaded from buying a home because of high prices and high mortgage rates. Fortunately, that doesn’t mean you have to give up on homeownership altogether. The key to making the right choice is understanding how much you can afford based on your financial situation, including the mortgage payment and standard charges like taxes and utilities. And then, if you decide to buy, know when and where to look for a deal. StreetEasy’s Data Dashboard can help you keep track of the latest market trends, so you’ll know where to find a good deal when it comes your way.
Key Factors to Consider When Deciding to Buy a Home
To figure out how much you can afford, you’ll need to have a clear idea of your financial situation, including income, debt, and savings. Then, you can use online calculators and the guidance of a trusted lender to see what you’re likely to qualify for. Keeping your credit score as close to 800 as possible will increase your chances of getting approved for the loan you want, and you’ll also save on interest payments.
Before you buy, it’s important to be confident that you can handle the one-time costs of closing. And you should be reasonably certain that you won’t be moving again anytime soon because reselling a home within two years can come with major tax consequences.