You’ve seen the ads before or heard the news: “Now is a great time to buy!” You’ve probably heard it more over the last few years than ever before, even a few weeks after the mortgage meltdown. The news has come from your REALTOR®, your lender, people on TV, your friends and family, and the National Association of REALTORS®. The phrase “now is a great time to buy” is everywhere. But is it?

Here in San Antonio our real estate market has certainly picked up. Houses are selling faster and for more money. I’ve seen several multiple offer situations. All of these are good indicators that the people do indeed think it’s a great time to buy. Interest rates are low, we have a good selection of homes on the market to choose from, and sellers are eager to get their home sold after months of slower activity.

While all those factors make for great headlines and a definite upside to buying a home, when I’m asked this question, I always ask one in return; “Is now a great time to buy…for you? Although you always want to try and time your purchases to save the most, a home is a necessity in life…it’s shelter, one of the three main ingredients for survival. If you need to buy or want to buy a home, you need to look at the factors in your life and make the decision that now is a great time for you to make the move.

The largest of the deciding factors you need to consider is whether or not you have your financial house in order. Is your credit looking good? Do you have enough income? Do you have enough savings? Will you be able to sustain a mortgage payment for the long term? By knowing that your finances are ready, you’ve made the biggest part of the decision. Easiest way to do this? Have your REALTOR® recommend a few good lenders to you and sit and talk with them. They can help you understand what price range you’re capable of buying and help show you anything you might need to fix before applying for a loan.

All the other factors are much smaller in scope, but should help you determine whether it’s a great time to buy for you. Is your family ready? Do you need more space? Do you need less space? Is your job stable? Are the types of homes you desire out there? What are current interest rates and is your credit good enough that you can lock them in, or will you be forced to pay a higher rate than what you see advertised? Ask yourself these questions and know your answers and you’ll be able to determine whether or not now is a great time to buy. The media will almost always tell you it’s a great time, but unless they can see into your mind, they’ll never know that it’s the perfect time for you.

image courtesy of olgaberrios

Based upon a previous post I wrote titled: “Are Realtors® Too Positive About The Market? Or Are They Not Doing Enough?“