When Can I Buy A Home? 10 Questions to Ask Yourself
When considering home ownership, it may be most important to consider your finances. Ask yourself these questions before you buy, so that you have a good idea what your financial situation really is.
10. For the general size and location of the homes you're interested in, what is the cost of homeowner's insurance?
9. How long have you been at your current job?
8. What is the cost of houses in your projected neighborhood
7. What is your "debt budget" (how much are you spending monthly to pay off debts)? How much debt do you currently have?
6. Before AND after taxes, what is your monthly income?
5. How much money do you have saved, not including the money for a down payment? How much cash will you have available for a down payment?
4. What are the projected current and future interest rates on the mortgage you are considering?
3. What does your credit
history look like?
2. Will you have the additional cash necessary to cover closing costs?
1. How will this decision affect your overall quality of life?
ConclusionThe experience of buying a home can be an exciting and new adventure for many people, but the risk of an unsteady financial situation can take the fun out of it. It's best to be honest about the current state of your finances and your continued savings plan for the future in case of an emergency. Use these 10 questions to uncover the truth, without worry or judgement. After all, this is your future dream home and what better way to build the future then to get a realistic assessment on your finances today? If the answer does not show up as a "yes" today, look over the questions again and ask yourself "When can I afford to buy a home?"
If there's anything else you think is important to ask yourself, share in the comments below.