Buying a home is the biggest purchase most of us will ever make. And knowing when the time is right can be tricky, because you have to consider everything from where you are in life to what's going on in the housing market.
It isn't an easy to decision to make. For anyone. So we leaned on Amy Richardson, a certified financial planner with Schwab Intelligent Portfolios Premium, to share the considerations she takes with her clients.
1.For starters, you should have a stable income.
2.And a healthy debt-to-income ratio.
3.Keep in mind that buying a house should never jeopardize your other financial goals.
4.And you should have enough money saved to cover the 20% down payment.
5.If putting in a 20% down payment just isn't going to happen, there are other options, but they may be more expensive in the long run.
6.No matter what, paying the down payment shouldn't leave you broke.
7.To get to a healthy place financially, you might need to have an honest look at your situation and reevaluate your saving and spending habits.
8.Or, you can try out Richardson's trick for saving that 20% down payment.
9.Waiting to buy until you have a high credit score will also save you money in the long run.
10.In general, buying a home only makes sense if you plan to keep it for five to seven years.
11.You also need to consider what the real estate market is like in your area.
12.And how mortgage interest rates are trending.
13.If it isn't the right time for you to buy a home — that's OK. Use this time to get your finances in order, and remember that there are pros to renting too.
Hey homeowners! How did you determine it was the right time to buy? Share your experience below.