Questions to ask yourself when deciding whether to buy a home or not:
Do you have money for a down payment?
For a conventional loan, you need at least 5% down, and on a FHA, you need 3.5%. There are options for no down payment such as gifts, VA loans (for veteran's), and MHDC loans. For the most part, expect to be paying the down payment.
What is your credit like?
If you have a credit score below 620, you will have a very difficult time finding someone to approve a loan for you. It's not impossible if you want to pay large interest rates and fees.
What are your Debt to Income Ratios?
If your bills are taking up 50% of your gross income(before taxes) every month, you could struggle to pay your mortgage every month.
Do you have job security?
If you have any reason at all to believe that your job could be in jeopardy, you don't want to consider buying a home. Why go into foreclosure and ruin the rest of your credit and be in big trouble later in life? Most rent is cheaper than mortgage payments.
Do you tend to move a lot?
If you get sick of living in one spot all the time, you really don't want to buy a home. If you are buying a home, you want to build equity, and you will never do that by moving from place to place because you will have to get a new loan every time you move.
These are just a few of the questions you should be asking yourself when thinking about buying a home. There are many others such as:
Am I in a stable relationship or is my significant other going to leave me with a mortgage to pay by myself?
Is this going to be a good investment or is the market declining? If so, am I willing to stay in the house long enough to where the market will balance out?
Is it a seller's or a buyer's market? Are you going to pay more than what you think the house is worth?
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