Knowing the Right Time to Buy a House

Making the decision to buy a home is a big step for anyone, and it’s one that requires careful planning, sometimes for years in advance.

It’s no surprise that prospective buyers want to make sure they’re taking that leap at the best possible time. So, when exactly is the right time to buy a home?

There are a lot of questions potential buyers need to ask themselves before deciding if they’re ready to make an offer. Factors outside their control will also affect what properties are available.

Here are a few things to consider when deciding the best time to buy a home:

Understand the relationship between interest rates and housing inventory

Rising interest rates over the past year have affected the housing market in a multitude of ways.

Higher interest rates mean fewer people are looking to move. In turn, fewer properties have been on the market, and those that are for sale often receive several competitive offers, Compeer Financial Lending Officer Lindsey Anderson said.

Now, as interest rates appear to be declining, summer 2023 could mark a turning point in the housing market. More housing inventory will become ­­available over the next six to 12 months, meaning buyers will have more options when looking at potential properties.

“I think all across the board, for buyers, lenders, everybody, it'll get the market back to a more familiar pace and more familiar area,” Anderson said.

Crunch the numbers

One of the biggest things potential buyers need to do before deciding the right time to make an offer is sit down with a mortgage lender.

Anderson says she’ll work with clients to determine a monthly payment they can afford before going ahead and looking at properties.

This includes considering current interest rates. Thanks to Compeer’s portfolio lending options, clients can always adjust those rates for a small fee if they become available.

Buyers should also know how much they’re able to spend on a down payment. While a 5% down payment is typically the minimum, anything less than 20% will likely require mortgage insurance, which buyers will need to work into their budgets.

“There's a lot of moving parts, so it's super important to meet with somebody and go over your entire financial picture,” Anderson said.

Considering a move? We're here to help. 

People today have more choice and opportunity to live where they want than ever before, and for many the peace and quiet of the rural lifestyle is increasingly attractive.

As a leading mortgage provider for people moving to the country, Compeer Financial has seen where the potential pitfalls lie – and we hope that by sharing some of them, you can make your own move to the rural lifestyle that much smoother.

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