Mortgage rates remain low and the housing market continues to improve. By most measures, it’s a good time to buy a home. But is buying a home (and perhaps selling an existing property, too) right for you, right now? Here’s some of the questions you’ll want to ask yourself:
Is my job and career stable? If there’s one thing the Great Recession has taught us, it’s that no one is immune to job loss. But if you’re buying a home, you’ll want to be confident that your job situation and career isn’t shaky. Or, if you hate your career and plan to go back to school at some point to train for another, you’ll want to know that, too. If you’re married and using both incomes to qualify for a mortgage, you’ll want to know the answers to these questions about your job as well as your spouse’s.
Do you have enough income? This one is important for both the first-time and move-up buyer. Don’t think about what you might be earning a year from now, or that raise you hope to get in the future. Think about whether your current income will comfortably cover your mortgage and living expenses, leaving enough left over for emergencies and unexpected expenses. It’s no fun to buy a home that you can barely afford.
Are you planning to stay put? If you plan to stay in the same city for at least three to five years, buying could be a much better option. But if you’re not sure how long you’ll be living where you are, renting may be a better choice.
For more ways to tell if you should buy a home right now, check out this article.