Is there a perfect time for buying a home in the Washington, DC area? Simply, yes. But the answer is probably not what you expect.
I advise my clients on this issue all the time with the same answer: “The perfect time to buy a home is when it makes financial sense.” That shouldn’t be taken as an avoidance tactic, because honestly, if I don’t sell properties, I do not earn an income. But rather than telling every client “NOW!” is the perfect time to buy and letting the consequences of the transaction fall where they may, I prefer my clients only purchase a home if the decision is right for them. The right time should be based on an overall financial approach rather than the tempting offers of a mortgage lender or the state of the housing market today. Forward thinking is important when buying a Washington, DC home.
There are considerations to make before buying a home; considerations that likely will only improve your financial circumstances and stability when handled appropriately.
First, prospective home buyers should think about how long they intend to live in the home. Individuals planning to live in home for five or more years can typically be comfortable purchasing a home, regardless of the housing market. In five years anything can happen and the housing market could be booming once again. If the house is to be consider a temporary dwelling, then chances are the time is not right to purchase the house.
Talk to a mortgage lender, bank or credit to secure pre-approval status before you actually begin looking for a house to purchase. Knowing what you can realistically afford can give insight on whether now is the time to buy. If you are pre-approved for a lower amount that you thought, you may not be able to purchase the quality of home you had hoped for and waiting may improve that – assuming your financial circumstances change as well.
Research and understand all the options available for mortgages. Read the fine print on every mortgage offer and determine if now is the appropriate time to obtain a mortgage. All mortgages are not created equally, and if currently you only qualify for a high interest rate then perhaps it would be better to wait something has changed. Perhaps a credit card with a large outstanding balance is the problem and paying it off would improve your credit score enough to qualify you for a better mortgage.
Think about more than simply the monthly mortgage payment when looking at your overall finances. While the mortgage payment should always be a large consideration, think also about the other home-related expenses you will be responsible for. Taxes, maintenance, general repairs, insurance and other household expenses add up quickly and may push you over the financial breaking point.
I’m always happy to discuss these topics and others with clients, so if you would like additional information on this topic, please let me know. I’m here to help!
~ Michelle
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