Timing the Market: When Is the Right Time to Buy?

Are you looking for a lake home for sale in MN? Buying a home is an important step requiring plenty of research, patience, and an experienced Minnesota realtor. Many prospective homeowners try to predict whether the mortgage rate is rising or falling, but these rates are proving to be particularly volatile. So, when is the best time to buy a house? Read on as I offer some answers. 

How Does House Buying Work?

There are a few different types of loans you can choose that affect the long-term cost of your home. A 30-year fixed rate mortgage is the most common (and most stable) option.  To qualify for a prime rate residential mortgage, you need a high credit score with very little debt. This is an attractive mortgage loan option because it will carry a low interest rate, which minimizes the amount you will have to repay over the life of the loan. If you don’t have a high credit score (740+), you can still qualify for a mortgage, but your loan may have a higher interest rate. You should canvas several lenders to ensure you are getting the best possible mortgage based on your credit, debt and income.

Supply and Demand Matter When Buying a Home

Getting the best deal you can on your home is an important goal, but sometimes, there’s only so much you can do. That’s why working with an experienced Minnesota realtor is so important. You should work with a realtor who specializes in a particular community or area because they may have access to insider information that could make the difference between your offer being discarded or accepted. Here are some supply and demand tips to keep in mind:

• The real estate market tends to cool down during the winter. People are less active (Moving in the snow? No thanks), so both inventory and demand are typically low. Prices will likely be lower, but waiting a few months until spring will give you a more complete picture of which homes are available.
• The market picks up in the spring, which is where the phrase “Spring Market” comes from. More homes will be listed, and you’ll have plenty of options, but competition will also be high. 
• Summer is also an active housing season marked by high competition and activity. Placing offers early and quickly should be your goal because homes don’t stay on the market for long.
• Fall is a great time to buy your home. By now, families have settled into their homes and are gearing up for the school year, but there are still plenty of homes available. Keep an eye on the market in September, and act accordingly for the best deal.

When Is the Best Time to Buy a House? When You Can Afford It.

While considering the seasons above is a prudent practice, none of that matters unless you are in a financial position to make your monthly mortgage payments – not to mention the other costs associated with homeownership. Avoid trying to time mortgage rates and home values because they are almost impossible to predict. If you find the home you want and can afford it, it’s time to make your offer. When you do buy your home:

• Make sure you have the most up-to-date information on property taxes, utility costs and any homeowner’s association fees.
• Get your home inspected by a professional before you sign on the dotted line. It will cost a few hundred dollars but could save you thousands.
• Avoid making large purchases and opening new credit cards during the period leading up to your closing date because it could cause your credit to dip, or worse: your mortgage lender could note the increased risk and decline to approve your mortgage loan.

Find Your Next Home With Dane Jensen

Are you ready to buy a lake home for sale in MN? Investing in a new home is a big decision, so having support from a trustworthy Minnesota realtor is essential. If you’re interested in purchasing a home, give me a call.

I was born and raised in Eden Prairie, Minnesota and have a passion for helping my clients find their dream homes. When I work with you, I take this motto to heart: “Put in the work today that most people won’t in order to have the success tomorrow that most people can’t.” With personal service and local knowledge, I will work with you throughout the homebuying process to get you where you want to live. Be thorough with your home inspection and your home search by leveraging my network of resources. Let’s connect and collaborate on finding your next home.