Look at your current situation and determine if:
- You have a steady, reliable source of income and a steady employment history for at least two years.
- You have a credit history.
- Your total debt is manageable and you can afford to take on the costs associated with home ownership.
- You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative.
- Think about your future plans that might affect your ability to manage the costs of home ownership.
- Consider whether you need to make lifestyle changes that might include not taking expensive vacations or purchasing luxury cars, and dining out less.
- Consider the costs of a growing family when looking at your home ownership budget.
- Consider whether your future plans might include a wedding or college education for yourself or your children.
And remember, the mortgage is not the only expense you need to consider. Home ownership comes with other potential budget items such as repairs, maintenance, taxes, landscaping, etc.
Once you fully understand your current situation, your future plans, and the big picture in terms of home ownership, it’s important to look at the pros and cons of home ownership to make the best decision for you and your family .
One of the keys to making the home buying process easier and more understandable is planning.