Why do you want a house?
Are you ready to be in one place semi-permanently?
How do you feel about paying for maintenance?
Is your salary secured?
Buying your home then one month later, losing your income to pay the mortgage is probably the worst nightmare to many people. No one knows the future of their job. But if you are uncertain about your employment status or don’t have an unsteady income stream, then you might want to give it a few months before buying. This gives you time to build up your savings reserves to protect yourself in case the worst happens.
Do you have a down payment and some for fees?
Have you saved up at least 10%, preferably between 20 to 25% for debt? Banks today offer loans with as little down as 3%, but the fees don’t stop there. As before stated, there are quite a few out of pocket costs that could drive up your out of pocket to several thousand beyond the down payment. And that doesn’t even include moving costs, new furniture, cleaning costs etc. Having saved up 10% or double the down payment it less like you end up house poor. I.E. lots of house, no furniture, and no money.
Is your credit together?
Do you know how to buy right?
Are you ready to buy?
Your home may not be considered an investment, but it certainly is an asset and can be used as a set to start building wealth but it’s not the only way.