Owning a home is one of the best investments you can make but it’s important to be ready for the responsibilities that come with it.
Before you start down this exciting path, take the time to ask yourself some important questions:
- How much debt are you carrying?
- Do you have outstanding balances on credit cards?
- What is your monthly car payment?
- How good is your credit?
These questions will determine not only the type of house you can afford to buy, but also the cost of your mortgage, and overall, your ability to enjoy your new home.
You should also consider how owning a home will affect what you do in your spare time and what that might mean for your lifestyle.
- Are you ready for a long-term commitment?
- Can you hold out on selling if the market takes a short-term dip?
- Are you ready to put the time, energy, and money into maintaining and repairing your home?
- Do you have a plan in case your income decreases or disappears?
If you have doubts about your readiness to buy a home in light of these questions, it might be time to re-assess your spending and medium-term financial goals.