Is Now a Good Time to Buy a House? Complete Home Buying Tips

Reviewed by: David Goldberg
VP, Mutual of Omaha Mortgage Lending

Estimated Read Time: ~8 minutes

Summary: Whether now is a good time to buy a house depends less on the market and more on your financial readiness, stability and goals. If you know the actual cost of owning a home, including taxes and upkeep, you can make a better choice that matches your lifestyle, not just your financial situation. You will discover that by preparing early, securing pre-approval and knowing when a good time to buy a house for your situation might be, you’ll be ready to act confidently when the right home appears.

In this article:

• Key factors to consider before buying a home
• Timing the market: When should you buy?
• Additional considerations before making a purchase
• Frequently asked questions (FAQs)

No matter how the real estate market swings, staying ready to buy a home is key. When planning to buy a home, staying prepared pays off, especially when the market’s a bit of a roller coaster.

To help you navigate this crucial decision, Mutual of Omaha Mortgage created a checklist to assess your readiness, regardless of the market conditions. When you’re ready, you can apply for pre-approval so you’re prepared, no matter if it’s considered a buyer’s market or a seller’s market.

Key factors to consider before buying a home

Prior to deciding whether now is a good time to buy a house, it’s important to look at your overall readiness. This not only means knowing what you can afford but also how you’ll manage life as a homeowner once you’ve got the keys. Here are some factors to consider:

1. Financial readiness

Stable income: Evaluate your employment stability and income consistency. A reliable income stream is critical to know if you’re ready to make monthly mortgage payments. You’ll want to be sure that your income covers your mortgage payments and cost of living, with enough left over to save for emergencies.

If your income varies from month to month, look at your average over the past year to get a more accurate picture. Lenders often prefer consistent earnings rather than occasional spikes. If you’re self-employed, plan to show at least two years of income records to strengthen your mortgage application.¹

Credit score: Check your credit score and confirm it meets the minimum requirement for mortgage approval. You can check your credit reports for free at annualcreditreport.com. Many of the most popular credit card companies and banks also offer insights into your credit scores and habits as part of their online offerings. Be sure to check with your financial institution to find out if this is a service they offer.

A higher credit score may mean better interest rates, which can end up saving you in the long run. If your score isn’t where you’d like it to be, there are steps you can take to improve it.

Savings for down payment and closing costs: Assess your savings to determine if you have enough for a down payment, closing costs and any other major purchases you might need, like appliances or home improvements. Remember, lenders may also look to see that you have at least 3-6 months of income saved after these costs to ensure you’re financially ready.

2. Budget analysis

Debt-to-income ratio: Calculate your debt-to-income ratio to understand how much of your income goes towards paying debts. Lenders typically prefer a debt-to-income ratio under 36% to show financial health and responsible debt management.²

Budget planning: Develop a comprehensive budget, factoring in mortgage payments, insurance, property taxes and maintenance costs. Consider using a budgeting app or spreadsheet to compare the full cost of owning a home against your current rent, as it’s easy to underestimate how much small home expenses add up.

3. Long-term commitment

Future plans: Think about your long-term goals and how buying a home fits into them. Are you excited about the commitment that comes with homeownership? Are you looking forward to finding a home in the perfect neighborhood or discovering the place that feels just right for you?

Location and lifestyle: Determine if the location and type of property align with your lifestyle and future plans. Consider factors like nearby amenities, commute times and potential changes in your life, whether it’s starting a family, working remotely or pursuing new hobbies. It’s about finding a home that grows with you and your family in the years to come.

4. Market awareness

Market conditions: Understand the current real estate market conditions and how they might affect your home-buying decisions. Is there ample inventory in the area you’re looking to buy in? Are the prices within your budget, and will you be able to afford property taxes or homeowners’ association fees?

Realistic expectations: Set realistic expectations based on market trends and be prepared for negotiation tactics. If you find a home that fits your needs and you can afford it, that’s often the best time to move forward. Be sure you’re working with a reputable real estate agent or broker who can help you navigate the home-buying process and set expectations.

5. Mortgage pre-approval

Pre-approval process: Get pre-approved for a mortgage to understand how much you can borrow, aiding in your home search. Often, a preapproval letter is needed to have your offer considered seriously.

Interest rates: Keep an eye on interest rate fluctuations and their impact on your mortgage payments. Interest rates can impact your budget and how much you plan to pay each month, and even a small rate change can affect affordability. A half-point increase can mean hundreds more each month, so locking in a favorable rate when possible can help keep costs predictable. When you compare lenders, look at more than just the advertised rate; you’ll need to review things like closing costs, fees and repayment options.

6. Homeownership responsibilities

Maintenance and repairs: Are you ready for the responsibility of maintaining and repairing a home? Regular tasks like fixing leaky faucets, repainting walls, or servicing heating and cooling systems are some examples of home maintenance you can expect as a homeowner.

 

Emergency fund: Create an emergency fund for unexpected repairs or financial hardships. Having a financial cushion and a down payment in place makes it easier to sidestep credit card debt or loans when unexpected costs appear after you move.

7. Professional guidance

Seek guidance from real estate agents, financial advisors and mortgage lenders to make informed decisions.

Ask questions: Ask questions and seek clarity on any aspect of the home-buying process.

Buying a home involves many moving parts, and each expert brings a different skill set. A lender can explain how rate changes affect you, a financial advisor can help with long-term planning, and a real estate agent can guide you through pricing, contracts and negotiations.

Timing the market: When should you buy?

Instead of asking, “When should I buy a house?” based solely on market timing, prioritize your financial readiness and long-term goals. Prices, interest rates and inventory fluctuate, so there’s no perfect time to buy.

The right time is based on your preparedness. If you have a steady income, savings and a clear vision of your needs, it might be a good time for you, even if market conditions are not ideal. Focus more on, “am I financially ready?” rather than “should I buy now?”

Additional considerations before making a purchase

Before deciding, consider factors that influence affordability and satisfaction:

• Homeowner’s insurance, utilities and property taxes vary by area.
• Inspections can prevent the purchase of a property with hidden problems.
• Consider resale potential, especially if planning to move within a decade.
• Compare loan types and terms to determine what fits your budget.

Your financial stability and preparation matter most when buying a home.

Take your time, evaluate your situation, and make a well-informed decision that aligns with your financial capacity and future aspirations.

When you’re ready to start your homeownership journey, our team of mortgage lenders can provide guidance tailored to your unique circumstances. With thorough preparation and understanding, you’ll be on the right path to achieving your homeownership dreams.

Ready to take the first step into homeownership?

Contact our Mortgage Team

Frequently asked questions

How do interest rate shifts affect my home-buying readiness

Rising rates increase your monthly payments, affecting affordability. Falling rates may make buying more attractive, but they’re unpredictable. Know your budget and be prepared to act when rates align with your plan.

What ongoing homeownership costs should I budget for?

Beyond your mortgage, expect property taxes, insurance, utilities and regular maintenance. Some homes also have homeowners’ association (HOA) fees or unexpected repairs. Factoring these into your budget helps avoid surprises and keeps homeownership manageable.

When is getting a mortgage pre-approval a smart move?

Pre-approval is useful once you’ve reviewed your finances and know roughly how much you can spend. It shows sellers you’re serious and helps narrow your home search. Getting it early can speed up closing when you find the right property.

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Reviewed by: David Goldberg

VP, Mutual of Omaha Mortgage Lending

David Goldberg has guided thousands of clients through one of life’s most complex and emotionally charged milestones: buying a home. With over 21 years of experience in the mortgage industry, he’s successfully steered clients through turbulent times—including the 2008 housing crash, the unpredictable Covid-era market, and countless other challenges involved in securing mortgage approvals and closings. David holds a BSBA in Marketing from The Ohio State University and an MBA from Case Western Reserve University, combining deep industry expertise with a strong foundation in business strategy and client service.

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Sources:

1. Federal Home Loan Mortgage Corporation (Freddie Mac), Qualifying for a Mortgage When You’re Self-Employed – My Home by Freddie Mac, December 2024
2. Investopedia, Debt-to-Income (DTI) Ratio: What’s Good and How To Calculate It, April 2025

Disclosures:

Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Subject to Credit Approval. For licensing information, go to: www.nmlsconsumeraccess.org

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