Is Homeownership Right for you?
Your answer is dependent upon on your financial situation, your future plans, and what you hope to accomplish for yourself and your family by buying and owning a home.
Let's start with your financial situation. Ask yourself the following questions:
- Do I have a steady, reliable source of income and a steady employment history for at least three years?
- Do I have a good credit history and understand how to manage credit?
- Is my total debt manageable? Can I pay all my bills on time and still afford to take on the costs associated with homeownership?
- Can I save money for down payment and closing costs or do I have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative?
- Do I have adequate savings to weather an unexpected loss of income or an emergency?
Next consider your future plans. Can you balance the costs of owning and maintaining a home (like repairs and maintenance) against other major expenses, such as buying a car, taking a vacation, saving for college or raising a family?