The fact is, a decision to purchase a home has more to do with your personal financial situation than it has with the economy as a whole.
When’s the right time to buy a house? It isn’t always easy to tell. Some people wouldn’t dare even think about it during the pandemic. In the beginning, millions of people were left out of work, which isn’t a situation you want to be in if you’re looking to purchase a house.
However, things aren’t completely terrible. For example, mortgage rates hit record lows earlier last year. Moreover, many people who’ve managed to keep their jobs also saved a lot of money in the last 12 months. The answer to this question is a complicated one.
Why Is Now a Good Time to Buy You a Home
The current situation may seem bleak initially; however, some people feel that this can be the right time to buy a home. Here are a couple of reasons for it:
- Low Mortgage Rates – About a year ago, the Federal Reserve made a noticeable rate cut. Consequently, rates on 30- and 15-year mortgages dropped significantly. As luck would have it, mortgage rates have remained pretty low until now. From the look of things, they’ll stay low.
- Working From Home – Ever since the pandemic started, many people have started working remotely. With more than 40% of Americans working from home, many people have discovered that they need larger living spaces to function properly. Depending on your situation, you may find that it’s time to stretch your legs in a brand-new home.
- Moving is Easier – Moving is never easy. However, since you probably don’t have to deal with daily office commute taking up all of your time, you now have the time to plan everything out. That makes moving easier and, if you’re not moving to a new city, even quicker than it would normally be.
Is Buying a Home During an Ongoing Pandemic a Good Idea?
Of course, for some people buying a new house this year won’t be easy. If you work in an industry heavily impacted by the coronavirus, you probably had your hours cut. In that case, a better option would be to wait until you start working full time again.
The fact is, a decision to purchase a home has more to do with your personal financial situation than it has with the economy as a whole. Buying your first house in 2021 is a good idea if:
- You’re earning a steady paycheck
- Your employment is secure and dependable
- Your credit score is in the 600 range
- You have enough money saved up
Get the Right Mortgage Team to Help You
When you’re buying a home for the first time, you probably need some assistance. The Better Rate Mortgage specializes in making the home purchase process a seamless experience. If you need help, contact us today, and let our team help you understand your finance options.