A. Try to answer the following 10 questions to determine if you are ready to buy a home:
- Are you sure you want to buy a home? Yes = 1 point.
- Do you anticipate any large expenses in the next two years, such as buying a car or having kids? No = 1 point.
- Do you expect to stay in your current job for the next two to three years? Yes = 1 point.
- Do you expect your job to stay in the same location for the next three to five years? Yes = 1 point. (Is your employer thinking of relocating? How do you know until you ask?)
- Do you know how much you can realistically afford to pay for housing? Yes = 1 point.
- Do you have a favorable credit record? Yes = 1 point.
- Do you have enough money for the down payment and closing costs? Yes = 1 point.
- Have you been prequalified for a mortgage so you know how much you can borrow? Yes = 1 point.
- Will your existing debt reduce your ability to qualify for a mortgage? No = 1 point.
- Is the amount you can borrow enough to enable you to buy a home you can truly enjoy? Yes = 1 point. (Don’t settle for something you don’t love, for you could well live in your home for a very long time.)