Broker Check

Blog: The VLP Live Greater View: When to Buy a Home

June 20, 2023

Your personal needs play a significant role when planning to buy a home. What are some of the other factors to consider when making this major life decision?

Long Term Goals

First, consider your long-term goals.  Purchasing a home might make more sense than renting if you plan to stay in your area for more than just a few years. Consider your job and if it provides a stable income or if you could easily find a new job nearby if changing jobs is necessary. Another factor for families with young children might be to consider the school district and the rating.


It will be important to be financially stable since buying a home may be the biggest purchase you will make in your lifetime.   An adequate downpayment, cash for closing costs, and the expectation to pay for ongoing expenses like property taxes and maintenance should be a major consideration.   Along with funds to pay for your home, an emergency savings account should be in place as well. Review your credit score since you will most likely get a better mortgage rate with a better score.

Reviewing your budget to determine how much you can afford comfortably monthly is important. Consider existing debts and other living expenses. Evaluate sacrificing another unnecessary cost to own a nicer home with a higher mortgage payment if this is your preference. 

Interest Rates

Lower interest rates can make homeownership more affordable. Consult with lenders or mortgage professionals to help with understanding your financing options. It may be harder to qualify for a loan with a higher interest rate.  On the other hand, if you do qualify and interest rates are higher, this means there will be fewer buyers competing with existing homes.

Although some experts predict a drop in home prices by year end, it doesn’t necessarily mean now is not the right time to buy. In the end, there is no “perfect” time to purchase a home. If you come across your dream home, and it falls within your budget and you are prepared, it might be the right time for you. Market conditions don’t always determine whether it’s the right time to buy if all other factors align with your personal circumstances.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.