How to Know if Now is the Right Time to Buy a House

Buying a house is a big deal. I get it, it's one of the largest financial decisions you'll ever make. Even after 20 years in the mortgage industry, I still get a little nervous every time I consider buying a new home. There’s a lot to think about: down payment, closing costs, monthly payments… and let’s not forget, it’s a big chunk of your hard-earned money.

When the world feels uncertain, it’s easy to feel paralyzed. You start second-guessing your choices. Is now the right time? Should I wait? 

If you're asking these questions, you’re not alone. I’ve helped plenty of people in the same boat. And guess what? If you’re thinking about buying a house, it could still be the right time for you. Here's how to figure it out.

Context / Why It Happens

The market is always changing, and right now, it feels like a rollercoaster. With home prices on the rise and interest rates unpredictable, it's easy to feel overwhelmed. But here’s the thing: the market today is very different from the 2008 housing crash, and while things are a little bumpy, demand for homes is still high. In fact, it's the demand that helps keep home values stable, even during uncertain times.

Instead of trying to time the market perfectly, it’s about looking at your own situation. If you feel good about where you are financially, buying could still make sense.

1. Is Your Income Steady?

First things first: Is your income reliable? If your job is secure and your income is predictable, you're off to a great start. If you're just starting a new business or your income fluctuates a lot, it might be worth waiting.

I’ve talked to many clients who are unsure because of market fluctuations. But if you’re comfortable with your job and income, you can still make a solid decision, even if the market feels unpredictable. It’s about having a mortgage payment you’re comfortable paying.

Check out this guide for first-time homebuyers here to get a solid understanding of the process and options.

Pro Tip: Don’t get caught up in trying to predict the market. Focus on your own finances and timing instead.

2. Are You Planning to Stay Long-Term?

Think about this: Do you plan to stay in the area for at least 3–5 years? If the answer is yes, buying might be a good idea. Here’s why: staying put gives you time to build equity in your home and benefit from market appreciation.

If you're not sure where you'll be in the next few years, it might be better to hold off. But if you’re confident in your future and love where you're living, this could be the perfect time to settle down and start building wealth.

Pro Tip: A 3–5 year stay is typically long enough to start seeing some growth in your home's value. This can make the whole process worth it in the end.

3. Are You Comfortable with the Payment?

Now, let’s talk about the numbers. One of the most important questions is: What monthly payment feels comfortable to you?

When you're buying a home, it’s not just about how much you’re approved to borrow; it’s about what fits into your lifestyle. Everyone spends their money a little differently, so make sure your mortgage payment doesn’t stretch you too thin.

In addition to your mortgage, think about other monthly costs like utilities, maintenance, and even commuting. These things can add up. The goal is to find a payment that feels manageable and comfortable, not just something that fits within the bank’s approval.

Pro Tip: Work from your budget and figure out what payment fits within your lifestyle, not just the maximum the bank approves you for.

4. Are You Ready for Maintenance Costs?

When you're renting, your landlord takes care of maintenance. But when you own a home, it’s your responsibility. That means budgeting for things like repairing a broken appliance or refreshing your yard. Typically, you should expect to set aside 1–3% of your home’s price for maintenance each year.

I always tell clients to think about these additional costs. If you’re not prepared for the occasional unexpected repair, you might get overwhelmed. But if you're ready for it, homeownership can be a rewarding investment.

Pro Tip: Consider a home warranty to help with larger repairs. It can ease your mind and protect you from big-ticket expenses like a broken AC unit.

5. Do You Have Enough Savings?

Life happens. Maybe your car breaks down, or you need to adjust to a new job. That’s why it’s important to have a financial cushion beyond just the down payment and monthly mortgage payment.

If you’re thinking of using every penny you have for a down payment, I’d suggest being careful. A little extra in your savings can help protect you from unexpected costs, whether it’s a home repair or a life change.

Pro Tip: It’s better to put down a smaller down payment and keep a buffer for emergencies. That way, you won’t feel financially squeezed.

FAQ: How do I know if I can afford a mortgage?

The best way to know is to look at your personal budget. What do your monthly expenses look like now? Compare that to what your mortgage payment would be, including things like utilities and maintenance. If it fits comfortably, you’re in a good spot.

FAQ: Should I buy now or wait for rates to go down?

Rates might go down eventually, but waiting for the "perfect" time could mean more competition and higher prices later. If you’re ready financially and planning to stay in the home for a while, buying now could still be a smart move.

FAQ: What’s the biggest risk of buying a home?

The biggest risk is not being prepared. Without a steady income, a clear budget, and a plan for ongoing costs like maintenance, you might find yourself in a tough spot. But with the right preparation, buying a home can be a great investment.

Bottom line: Buying a house is a big step. But it doesn’t have to be overwhelming. If you're financially stable, planning to stay long-term, and comfortable with the payment and maintenance costs, it might be the right time for you.

Don’t wait for the "perfect" market conditions to fall into place. Focus on what works for you and move forward with confidence. You’ve got this!

Rebecca Richardson, “The Mortgage Mentor,” is a nationally recognized mortgage advisor based in Charlotte, NC, lending in multiple states across the U.S. With over 20 years of experience, she helps buyers navigate home financing with confidence—whether you're buying your first home, investing, or navigating a major life transition. Rebecca is especially known for her work with veterans, real estate investors, and clients with complex financial needs. As a top-producing loan officer and sought-after educator, she’s a trusted guide for buyers and real estate professionals nationwide.