Should You Buy a Home

Are you renting and wonder if you should make the leap to buying a home? Consider the following to help make your decision:

• Your financial situation

Request your credit report and see if you have a good credit score. This will be important when it comes time to get a mortgage. You want to have a good credit to debt ratio (having way more credit than debt is what you want).

Budget your finances and see how much you can afford to pay on a home. If your rent is inexpensive, consider what type of home you can get for the same amount. Is it better to continue renting or live in a smaller and less comfortable home?

Do you expect a change in your financial situation in the next couple of years? Either making more or earning less? You may want to wait so you can buy a home that will better meet your needs in the future.

• How long do you expect to own

If you move around a lot such as in the military or because of your business, you may reconsider buying a home. Usually, you can make enough equity in a house in about four years to make it worth it to own. Owning a home for at least two years also means you won’t lose out on capital gains taxes.

• Working on a home

Are you able to work in the yard and fix things in a home? Or will you have to endure the cost of hiring someone? Consider these before buying a home. Remember, when you rent, this is all taken care of.

While owning a home is a wiser decision in many situations, renting can also be a good choice if you are not in the right position to buy.

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