Is Homeownership Right for You?

The answer depends on your financial situation, your future plans, and what you hope to do for yourself and your family by buying and owning a home.

Let's start with your financial situation. Ask yourself the following questions:

• Do you have a steady, reliable source of income and a steady employment history for at least three years?
• Do you have a good credit history and understand how to manage your credit?
• Is your total debt manageable? Can you pay all your bills on time and still afford to take on the costs associated with homeownership?
• Can you save money for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative?
• Do you have adequate savings to weather an unexpected loss of income or an emergency?

Next consider your future plans. Can you balance the costs of owning and maintaining a home (like repairs and maintenance) against other major expenses, such as buying a car, taking a vacation, saving for college or raising a family? Use these worksheets to better understand the costs of homeownership that begin after you move in.

• Home Maintenance Worksheet
• Home Appliance Cost Worksheet

Now that you’ve looked at your financial situation and the costs of owning a home, consider how much you can afford to spend buying a house as well as the risks and rewards of becoming a homeowner.

• What are the advantages of homeownership?
• How much can you afford on a home?
• What are the risks of homeownership?
• What are the myths about homeownership?