When is the Best Time to Buy a Home?
Trying to figure out the best time to buy a home?
“When” to buy a mobile home ultimately depends on your financial situation, life goals, and readiness to become a homeowner. Factors of when to buy a home differ from person to person, so today we are going to go over some factors you should consider if you are looking to buy a home.
Let’s jump right in!
When potential homeowners are considering buying a mobile home, they are usually concerned about interest rates, home values rising/falling, and other housing market predictions. But just ask any intelligent investor about trying to time the market. At best, you will be lucky. At worst, it’s a disaster.
“I make no attempt to forecast the market—my efforts are devoted to finding undervalued securities.”
– Warren Buffett
Marry the Home, and Date the Mortgage Rate!
You’ve probably heard the saying! Mortgage rates began to rise in the first quarter of 2022, and as of late December, the 30-year fixed rate was 6.6%. Higher interest rates reduce purchasing power by making home loans more expensive. Regardless of the current interest rates, it is critical to shop around for the best available rate and then ensure you can afford the monthly mortgage payment. For peace of mind, lock in your rate until you close your mobile home loan to avoid rate increases in the future.
Once you’re in your new mobile home, even with a rate you aren’t in love with, you now have the option to refinance your loan when rates lower. According to the National Association of Realtors, the average homeowner changes homes every 10-13 years. So consider how long you’re planning on living in your mobile home.
Finances Must Be Reviewed When Deciding if it’s the Right Time to Buy a Home
Let’s touch on three financial areas you should evaluate when considering if it’s a good time to buy a mobile home:
You will need money for a down payment and closing costs when purchasing a mobile home. Don’t forget any extra expenses you may have upon moving into your mobile home if you want to make extra improvements to the land or add a shed or any other features. The down payment required varies depending on the type of mortgage and the lender. The greater your down payment, the lower your monthly mortgage payment.
Where do you stand with debt? To determine whether you qualify for a mortgage, lenders look at your debt-to-income ratio or DTI. The lower your DTI, the better your chances of qualifying for a mortgage and receiving the best available interest rate.
How is your credit score? Some lenders will approve you for a loan even if you have a bad credit score. Still, you’ll typically qualify for a better loan if you improve your score.
Did you know you can check your credit score free on AnnualCreditScore.com? If you have a goal of homeownership, it is a wise decision to stay up to date every 12 months on your score to know where you stand and give yourself time to work on your credit and get it in good standing.
Is it a Good Time For You to Buy a Home?
You probably see it for yourself at this point, the best time to buy a home is when it works with your stage of life and your finances. If you have evaluated all the above and you feel confident, then it may be time to speak with a member of our team at Braustin Homes!
Don’t hesitate to reach out, we are ready to be your guide during each step of your journey to mobile homeownership! You can reach us by phone, on our website, or visit us in person in Odessa or San Antonio, Texas.