The decision of when is the right time to buy a home is a question that many people, quite frankly, complicate. The truth is that the right time to buy a home is different for everyone.
Well, for one, you should have stable income. This will vary depending on whether you want to buy a studio condo, a single family home or an estate (mansion) and where you want to buy. Homes vary in price from state to state, county to county, and city to city.
Secondly, you should also have good to excellent credit. Ideally, your middle credit score of all 3 should be at least 640. However, you can get qualified for a home loan with a credit score of 580.
Further, you should have enough savings for the down payment, closing costs, and funds to pay your realtor for their services. If you don’t have the funds to pay your real estate agent’s commission, you can ask the seller if they are willing to help you pay for your real estate agents commission.
The down payment will range between 3% to 20% + of the home price depending on your over all financial scenario, budget, debt, income, desired payment, etc. A popular home loan product for first time homebuyers is the FHA, which has a 3.5% down payment requirement.
Although you may be able to convince the seller to pay for all or a portion of your closing costs, you should be ready with at least 3% of the home price in case the seller does not decide to help you with paying for your closing costs. The seller is not obligated to help pay for your closing costs. It is all negotiable and every seller may decide differently.
Lastly, you should have a need or desire to buy a home. Don’t buy a home simply because of outside pressure by family and friends or because you feel that you are “getting too old”. A job relocation need or a growing family are good reasons to buy a home, for example.
If you are undecided and need further help and guidance in order to decide whether or not today is the right time for you to buy a home, please contact us.
We will provide you with a personalized, informative and detail explanation based on your individual situation and needs so that you can decide when is the best time for you to buy a home.
We have a team of 30+ real estate professionals who can assist you in the greater Southern California area (Los Angeles County, Orange County, Riverside County, Ventura County, Riverside County and San Diego County).
We also have a network of great real estate agents throughout the U.S that we can refer you to.
8050 Florence Ave. #109
Downey, CA 90240
(800) 659-4610
DRE 01787685
