There comes a time in everyone’s life where they start debating something very important – is it time for me to buy a house? It seems like no matter who you are, the expectation is that, sooner or later, you will settle down and purchase a home, with a thirty-year mortgage, and stay for a long time. But with the way the world has changed, the need to buy a home seems like something that is less a necessity and more an option. So, should you buy a home? Here are three questions you should ask yourself before you make the decision to buy a home.
Are You Financially Ready?
The first question that you should ask yourself before buying a house is if you are financially ready to purchase a home. A house is a major financial investment, and for many people and families, a house is the single largest asset that they own – by a lot. So, deciding to buy a home is a huge financial decision that will change your finances. You should have a twenty percent down payment ready to go and know that you can afford your monthly mortgage payments and then some before deciding to buy a home.
What Type of Home Are You Looking For?
The next question that you need to ask yourself before buying a home is what type of home you are looking for. There are tons of options for styles of home that you can purchase depending on your wants and needs. A multi-family or multi-unit home is a great option for homebuyers looking to stay in a smaller space and get rental income to offset the cost of their home. Single-family houses are best for families with kids and make good long-term investments. Think about your wants and needs in a house and figure out what you are looking for.
Am I Going to Live Here Long Term?
The final question that you need to ask yourself before buying a home is if you are planning on living there long-term, for ten years or more. If you are going to be living there for the long-term, you need to make sure you are buying a home that will satisfy not just your short term needs but long term wants and needs. If you are only going to be in a place for a short period, you need to consider if renting might be a better option for you, or at least thinking about your purchase as an investment property rather than a forever home.
Purchasing a home is a major decision that cannot be taken lightly. There are a lot of considerations that you need to make before embarking on your home buying journey. Make sure that you have answered these three questions before you decide on buying a home.
Check out this article on long-term goals your family should be saving for!