What’s the Best Time To Buy a House in Today’s Economy?
When you’re looking for a new home, you’ve likely heard talk about whether now is the best time to buy or not. Even with skepticism, your dreams of homeownership remain intact. It’ll just take some extra research and planning ahead of time. Allow our team at Five Star Storage to guide you through several homebuying factors and steps on how to buy a house in the current market.
When’s the Best Time For Buying a House?
The best time to buy a house is during the fall, specifically late September or early October. The busier house-buying seasons are usually in the spring and summer, which leaves sellers more motivated to sell. Whatever isn’t sold during the summer, the seller will want to sell before the holidays. These situations often lead to price negotiations.
In the northern states where the cold arrives sooner, a summer move could be your ideal option. Even though it’s prime selling season, price negotiations can still crop up. To find the best options, do extensive research and get started as soon as possible.
What Factors Influence the Housing Market?
The prices of houses are not set at a standard rate. A wide range of factors come into play when determining the housing prices of a certain neighborhood or town. Understanding these factors is crucial for making informed decisions and securing the best prices possible. Some of the most important housing market factors include:
- Interest rates
- Economic conditions
- Housing availability
- Public policy and regulations
- Inflation
- Consumer confidence
What’s the Minimum Credit Score To Buy a House?
Another vital factor in buying a house is your credit score. This score ranges from 300 to 850. These scores are determined by whether you pay your bills on time and the amount of debt you have. On average, the minimum credit score needed for most mortgages is 620.
If needed, there are certain government-backed options to help you secure a loan with limited options. One of these options is an FHA Loan. The Federal Housing Administration provides these loans, which require a credit score of only 580 with a down payment of at least 3.5%.
What To Do When Buying a House With Bad Credit
For those with less-than-optimal credit scores, there are still ways to get a mortgage on a house. It will just take a few extra steps, such as the following:
- Check your credit score. See that there are no errors with your credit score, as these can often lower your score and chances of loan options.
- Pay down your debts. Lowering the amount of debt you have with frequent and steady payments will reflect well on your credit score and reduce financial stress.
- Consider a cosigner. Having a cosigner with better credit than you helps qualify you for a loan.
- Increase your down payment. A larger down payment reduces lender risk and helps you budget further down the line.
Steps To Buy a House
When you’ve decided it’s time to enter the housing market, know that a great home situation doesn’t sprout up overnight. Whether you plan to move with your family, a set of roommates, or on your own, buying a house is a process that consists of several key steps. Let our team guide you through six of the most vital steps in the home buying process.
1. Prepare Financially
The first step to buying a house is preparing your finances. Determine the budget you can afford, taking into account your income, existing debts, and desired mortgage payments. We recommend you don’t spend more than 25% of your take-home income on mortgage payments each month.
Set aside a specific amount for your home’s down payment. These payments are usually 20% of your home’s cost, but may vary depending on your current financial situation and other factors. Alongside that, get pre-approved for a mortgage. This action will show sellers you’re serious about purchasing a home.
2. Find a Real Estate Agent
To get professional advice and guidance on your home-buying process, a real estate agent is a necessity. Select a qualified and experienced agent in the area where you plan to move. Check their track record before contacting them. Once you connect, discuss your needs and preferences in detail so they know what properties and listings to look for.
3. Shop for a Property
Next, it’s time to start shopping! Browse through online listings of homes in your desired neighborhoods and research nearby schools, amenities, and the local living conditions. Once you find a property online, visit the property in person. You can schedule a property tour through your real estate agent.
4. Make an Offer
Did you find your ideal property? Work with your real estate agent to draft an offer to give to the seller. Negotiate the price, terms, and closing dates. These offers will also include various contingencies. These contingencies include inspection to check the property’s condition and appraisal to see if the home is worth the amount all parties agree on.
5. Finalize the Purchase
Once your offer is accepted, apply for your mortgage with the necessary documents and application. Do your research and talk with your real estate agent about which mortgage option is right for you.
Conduct one final walk-through and close the deal with the signing of papers and transfer of the property’s ownership. Don’t forget about homeowners’ insurance to protect you financially from damages and liabilities.
6. Start Packing and Moving
As move-in day approaches, you’ll need to pack your belongings beforehand. Start with non-essential items, such as media, electronics, and small pieces of furniture. As the big day approaches, pack more used items in stages. For furniture, use protective wrapping and break down whatever pieces you can into stages.
If you have time between the end of your current lease and your move-in day, consider renting self storage to give yourself a much-needed buffer. The best storage unit will keep your belongings in a secure and convenient location, allowing you to grab what you need and go at your own pace.
Help Move Into Your New House With Five Star Storage
When you need self storage to store your belongings before moving, turn to Five Star Storage. Located throughout the northern United States, our storage facilities offer numerous storage units, including small, medium, and large sizes. Even after you’ve moved in, use your storage unit to declutter and create more space at your new place.
To rent or reserve your storage unit, contact us or find your nearest Five Star Storage location online today!