7 Questions: Is Now the Right Time to Buy?

By Raymond Stoklosa · August 11th, 2009

Home in 94401

This seemingly straight-forward question is often answered emotionally with little thought given to several very practical considerations. To be sure, the decision to buy a home is much more about a person’s circumstances and goals than it is about the market.

Ask Yourself These Questions First

Let’s look at some of the questions you can ask yourself about whether now is the right time for you to buy a home or not.

What do you most want to change about your present housing situation and why? For example, your present housing situation is unsuitable in terms of location, size, condition and/or quality of life.
Do you plan to own your next home for 10 years? Home ownership is a long term investment; It takes time to grow your investment and build equity.
Do you have at minimum 3.5% of the purchase price available for the down payment plus money for closing costs and a safe reserve? To obtain the best available financing, you’ll need an equity contribution of about 20% and have a little extra for unexpected hardships. There are programs, like FHA, that will allow you to put less money down, but will require you to pay an upfront and a monthly mortgage insurance premium. Closing costs can be several thousand dollars, so it is important to plan for those as well. Speak with a knowledgeable lender who can help you sort out of all this before you start the home buying process. Remember the golden rule of home buying, find a loan first, then find a home.
Are you able to afford the mortgage payment? Will you have money to pay for the other necessities of life and still save a bit after paying your monthly mortgage payment?
Can you find the right home for this stage in your life? Someone else’s great home may not be right for your situation, financial capabilities and family make-up. Take the time to find the right home for you that will work for you and your family for the next 5-10 years.
Are the property values stable in your desired neighborhood? While history is no guarantee of future performance, historical trends are usually indicative of inherit value and desirability – all other things being equal.
Will buying a home now have a positive impact on your life and lifestyle? As a home owner, do you foresee measurable improvements in your personal circumstances if you buy a home?

Happy With Your Answers?

Check out our Buyer Representation Program to learn about how we represent our clients. We have a bit of a different philosophy that you may like.

Ready to Talk to Someone About Buying a Home?

Call or email us today to set up a meeting and help get you started. Want to speak with a great lender first? Call or email our Co-Author, Chris Williamson and he’ll help you learn what kinds of financing options are available for you.

Video: Is 2009 the Year to Buy San Mateo Real Estate?