The real estate market is highly unpredictable and competitive, even more so as we rebound from COVID-19.

While many buyers monitor mortgage rates and home values to make their decision, there is no failsafe, accurate way to determine the ideal time to buy a house. Additionally, the type of loan you get will depend on the quality of your credit score, which will ultimately affect the home's long-term costs. Below, we discuss what your credit score could mean for your financial capability to get a mortgage loan that works for you. 

Considering Your Credit Score

“What credit score do you need to buy a house?” is one of the most common questions we get from potential buyers. And the answer is complicated, as there are many factors that affect an individual’s loan qualifications and terms. No one-size-fits-all advice is going to be as valuable as talking with your lender and running through the various options to see what will work best for you. However, there are some general guidelines regarding credit score that may be helpful. 

Generally, a lender will require your credit score to be in the 600s at least. Loan assistance programs are available, but they require credit scores at certain levels. A popular program that we see used all the time is from OHFA (Oklahoma Housing and Finance Authority), and requires a minimum of credit score of 640.

The OHFA Program is often used in conjunction with an FHA loan for people who have lower credit scores and need down payment assistance. Combining the two can make all the difference for families who may not otherwise be able to get the home of their dreams. 

Even if your credit score isn’t where it needs to be, it’s still a great time to start working with a lender, who can help you achieve your goal quickly with expert advice and financial coaching. 

Capital Homes’ “Clean Slate Program” helps buyers work hand-in-hand with our preferred lenders to get their credit score in great shape to purchase a home. So, even if your credit score isn’t quite up to snuff, don’t count yourself out of homeownership! Many times, all it takes is some focus and time to make the changes needed to increase your score and enhance your buying power. 

Competitive Real Estate Market

According to a report from Norada Real Estate Investments: 

Oklahoma is one of the hottest housing markets in the nation. In the most recent annual population estimates released by the U.S. Census, Oklahoma City is now the 25th largest city in the United States, according to the latest annual population estimates released by the U.S. Census Bureau. Since 2010, it has grown by more than 12%. There was already a shortage of housing supply, then when the pandemic showed up in March, many sellers decided to take their properties off the market.

This drove supply down even more, but the demand remained high in the Oklahoma City housing market. According to Zillow, home values are up 12% year over year in Oklahoma while in Oklahoma City they have gone up 14%. Despite the rising prices, Oklahoma real estate is still highly affordable relative to most housing markets in the U.S.

This is where building a new construction home can be a great choice. When you build new, you don’t have to participate in costly bidding wars, or settle for a fixer-upper that you don’t really want. You can lock in a great home, just the way you want it, in a lovely community in a desirable area, at a fair price. 

When Is The Best Time to Buy A House Then? 

As we have mentioned before, it is impossible to accurately time or predict the property values and mortgage rates. Therefore, the most suitable time for you to purchase a home is whenever it is within your financial means. 

At Capital Homes, we strive to help every customer we encounter find or build the homes of their dreams. Therefore, we have deliberately maintained a small team of experienced and skilled professionals dedicated to their craft, be it our home builders, design consultants, or sales representatives. We keep our Oklahoman values of kindness and honor in mind in everything that we do, from the homes our builders construct for our customers to the service our design and sales team provides. 

For more information about Capital Home's home building and design services, please do not hesitate to contact us.