When is the Right Time to Buy a House in the Country?
Making the decision to buy a home is a big step for anyone and it’s one that requires careful planning, sometimes years in advance.
It’s no surprise that prospective buyers want to make sure they’re taking that leap at the best possible time. So, when exactly is the right time to buy a home in a rural area?
Whether or not you are first-time home buyers, everyone’s situation on when to purchase a home is going to be different. There are a lot of questions potential buyers need to ask themselves when deciding if they’re ready to make an offer. Factors outside their control will also affect what properties are available.
Here are a few things to consider when deciding the right time to buy a house:
Understand the Relationship Between Interest Rates and Housing Stock
Rising interest rates over the past couple of years have affected the housing market in a multitude of ways.
With borrowing costs higher than in recent years, many potential buyers have chosen to stay put, leading to reduced inventory levels. Homes that do hit the market often attract multiple offers, keeping competition high.
While interest rates have stabilized, a substantial drop is not expected in the near term. This steady rate environment may gradually encourage more homeowners to list their properties, particularly those who delayed moving due to rate uncertainty.
Crunch the Numbers
One of the biggest things potential buyers need to do before deciding the right time to make an offer is sit down with a home mortgage lender.
Together, we can determine a monthly payment you can afford. It’s especially helpful to do this before looking at properties so you don’t fall in love with a property outside of your means.
This includes considering current interest rates. Thanks to Compeer Home's mortgage lending options, current clients can always adjust their mortgage rates for a small fee if they come down.
Buyers should also know how much they’re able to spend on a down payment. While a 5% down payment is typically the minimum, anything less than 20% will likely require mortgage insurance, which buyers will need to work into their budgets.
First-time homebuyers have the opportunity to take advantage of Compeer Home’s First-Time Homebuyer program allowing them a zero down payment option.
With lots of moving parts, it's important to go over your whole financial picture with a rural lender to ensure you can put down roots in the home of your dreams.
