Is Now The Right Time To Buy Your First Single-Family Home?

Buying your first single-family home is a huge decision. Not only will it determine where your family will be living for years into the future, but it will also greatly affect your financial life for many years to come.

If you are on the fence, trying to decide if the time is right to call up a realtor and start seriously looking for a property, then do each of these things to help you decide:

Ask Yourself How Much Savings You Will Have Post-Purchase and Moving Costs

If you can't cover your moving costs and closing costs out-of-pocket and still have a significant savings account balance, then this is a sign you aren't ready to buy a home yet. But if you've planned for the purchase and have saved up for it, then you will be ready to start looking for a single-family home. 

Set a Realistic Budget to Determine If Your Future Home's Price is Affordable

When preparing to purchase your first home, you need to set a realistic budget for what you can realistically afford. Not only do you need to take into account the mortgage, insurance, and taxes you will pay each month, but you also need a line item in your budget to account for maintenance and repairs.

When you own a single-family home, there are many repairs and maintenance tasks you will need to pay for each year that your homeowner's insurance doesn't cover.

For example, if your HVAC system stops working in the middle of the winter, then you will need to have it repaired or perhaps replaced. This can cost thousands of dollars, and if you don't have the money, then it will be a very long and very cold winter for you and your family. However, if you've prepared for emergencies and other maintenance tasks like these then you don't need to be concerned about your home's budget. 

Do Some Research on the Local Real Estate Market and Time it Correctly

The real estate market is fluid, and as such, it goes up and down along with the rest of the U.S. economy. If the real estate market in your area is at an all-time high, then chances are great that it will drop in the future. 

If you want to get a good deal on a home where you plan to stay for the long haul, then it can be an excellent option to wait out the market. Rent a cheap place to live and keep piling up your savings. When the market drops and the interest rates are low, then you will have more than enough cash to snap up a good deal and get a great mortgage rate in the process. 

If you opt to take this alternative route to buy your home, then you can save yourself a ton of cash over the next few decades and will end up being able to purchase a much more desirable home in the process as your reward for patience. Speak with a realtor for more information.