Should you buy a home now or wait?
Should I buy now? A lot of prospective homebuyers are asking themselves this question lately. With rates on the rise and high inflation making such a big purchase can be daunting. Whether or not you should buy no or wait is a very personal decision. What is right for one may not be right for another.
Do you want to be a homeowner?
The main and number one reason for buying a home should be because YOU WANT TO BE A HOMEOWNER. Owning comes with some perks. Pride of ownership, creative control over your space, building an asset, no landlord etc. Many people we see at retirement age their primary residence is their only asset. It also comes with additional costs of maintenance and likely a large mortgage to pay. If despite the few drawbacks you still know you want to be a homeowner then it could very well be the right time for you to buy.
Plan and Prepare!
Buying a home is a big purchase and should be something that you plan for. You want to make sure you are getting into a home and mortgage that will be affordable to you long term. Even in times like today with higher interest and inflation. Long term homeowners will always have to face times of fluctuation interest. You will want to take some steps to make sure you are in a secure position to take the leap into homeownership
What are the steps you should be taking to buy a home?
- Save up your own down payment! While 5% is the minimum a 10% down payment will give you equity and make a bit of space for price fluctuations. This gives you a bit more protection so that you don’t have to worry about owing more than your home is worth. Saving it up on your own looks good in the lenders eyes. However, if you have an immediate family member willing to contribute then that works too!
- Reduce your debt. If you are going into buying a home with a ton of pre-existing debt not only will it reduce your borrowing power but it will also add risk to you in times of rate increases. Get that debt paid down as much as possible!
- Buy a home that is well within your means. You should already have an idea of what you are comfortable paying monthly since you likely already pay rent. Try and keep your mortgage payments including property tax in the same range as your current rent. If you decide to go higher it’s a good idea to take a few months to set aside the difference as if you were making a higher mortgage payment and see how it feels on your finances.
- Don’t over pay for a home. Make sure you are buying a home for close to what it is actually worth. Paying far over market value for a home when demand is high and supply is low is a recipe for disaster. Once the market settles down you could end up owing far more than the house is worth without being able to sell it without taking a big loss.
- Find the right professionals. A good professional will help guide you to make the right decisions for your specific situation. Everyone has a different circumstance and while buying now may be right for some it may not be the right time for others.
Becoming a homeowner can be an amazing feeling. While we can’t predict what difficulties we will face in the future we can always do out best to be prepared. The above steps will give you a good foundation to take on likely the largest debt you will ever have.

Mortgage Associate
MA Advance Mortgage