Buying a home is one of the biggest purchases we make in our lives. As a result, there are often “right” times to buy a home and “wrong” ones. When should you put off making this decision?


1. Your Can’t Make the Down Payment

These days, lenders offer loans with down payments from 3.5 to 10 percent, although 20 percent is ideal for the best interest rates. If you can’t afford the lower amount, it’s best that you hold off and start saving up to be more comfortable buying in the future.

2. Your Credit is Too Low

It’s true that you need to have an almost excellent score – ideally, around 750 – to get the best loan and lowest interest rates. However, there’s a gray area in which you can still get approval. Unfortunately, that begins to bottom out once you’ve gotten under 620 and at that point, you should be expecting to pay higher interest, more fees and larger monthly payments – if you’re approved at all.

3. High Debt Ratio

Lenders want to see that you have a debt-to-income ratio no higher than 36 percent. If your mortgage payment will end up being at least 50 percent of your budget, you likely can’t afford to buy a home.

4. Not Able to Make Costs Associated with Buying a Home

Whether you realize it or not, several costs are associated with owning property. Some might be fees related to your mortgage, while others cover regular maintenance and repairs. If these seem too far out of the realm of your budget, making such a big purchase should be put on hold.

5. Less Stability

While lenders like to see a stable, consistent life, you should realize that you’ll need to live in a property for at least a few years before it starts building equity, to give you a better ROI later on. Reconsider your decision to buy a home if you change jobs frequently, don’t have a stable relationship or travel regularly for business.

When you are able to afford property, start looking in Central Connecticut with By Carrier. Our custom homes cover a range of types over multiple communities. For more information, contact us today.

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