Yes. It may be a good time to buy. If you meet the following criteria. If you do not meet all of the criteria, then it may not be a good time for you to buy.
- You are debt free.
- You have an emergency fund of 6 months of living expenses.
- You can put at least a 20% down payment on the home so you can avoid paying PMI insurance. This down payment is separate from your emergency fund.
- You have been successfully living on a written budget for at least 6 months.
- You buy a home that is within your budget.
- You don’t buy a home that is dependent on two incomes to keep the note current.
- You are not buying the home because you think you can make money on it in a few years.
If you buy a home while you have tons of debt and no money saved up, the home will be a curse and not a blessing.
Many people will not be able to meet all of the conditions I mentioned. That means that many people will not be able to buy a home. Having a home is not a right just because you breath air or live in America.
Ive been seriously considering buying a house. If I can’t close before the tax credit expires (Sept 30), than it’s doubtful that I will for another couple years.
Great guidelines. You make home buying something that not just everyone is able to do. Hmmm…. Too bad people weren’t taking this advice before they jumped into a home that became their nightmare. Keep saying it like it is!
I suppose the guidelines are a bit tough. But buying a home is a major life decision and expense. I don’t think people should just run out and sign the papers without being financially prepared. The sub-prime crisis should have taught us this lesson.
Thanks for commenting Joe, Patriot.
[...] Is Now a Good Time to Buy a Home? at Financial Bondage [...]