Have you been considering purchasing a home? If so, you are not alone. After all, according to many experts, there is no better time to purchase a home than now. With interest rates lower than they have been in 50 years and with home prices hitting rock bottom, you stand to save a significant amount of money if you make a purchase now. Still, there are many things to consider when trying to decide if now is the right time for you to own a home. Here’s a look at five questions you should ask yourself as you try to make this decision.
#1: Are You Financially Ready for Home Ownership?
Perhaps the most important question you can ask yourself is whether or not you are financially prepared to own a home. Remember, home ownership involves more than making your mortgage loan payment each month. You will also need to pay taxes, insurance and utilities as well as the cost of any repairs that may be necessary.
#2: Are You Prepared to Maintain Your Home?
In addition to paying for the maintenance and repairs that your home might need, you will also need to dedicate time to home maintenance. If you call a professional to make repairs, you might need to take time off from work in order to be there when that professional arrives. Similarly, you will need to dedicate either the time or money necessary to hire someone to perform mowing, shoveling snow and other routine yard work that comes with home ownership.
#3: How Long Do You Plan to Live in the Area?
Before you purchase a home, you should give some thought to your long-term housing plans. If you intend to move within the next few years, purchasing a home now may not be a wise decision because you will not have time to build up equity in the home. If you don’t have any plans to move for at least five years, however, purchasing a home now shouldn’t cause any issues.
#4: What are Your Immediate Plans for the Future?
In addition to considering where you plan to live in the next five years, you should consider other plans for your future as well. If you plan to have a family, for example, purchasing a home may be a great idea. At the same time, you will want to purchase a home that is large enough to accommodate a family. If you plan to do a lot of traveling or to spend a lot of time climbing the corporate ladder over the next several years, on the other hand, the time and commitment involved with home ownership may be problematic for you.
#5: Is Your Credit Rating Healthy?
Finally, you should ask yourself if your credit rating is healthy. Even if you do manage to obtain a loan with a poor credit rating, the amount you pay toward interest can be quite significant. Therefore, even if you do feel you are ready to purchase a home, it might be better to wait for six months or longer in order to give your credit rating time to improve so you can qualify for a lower interest rate.
Keith Munsell 
