Renting Is Fine, Too

I speak with a good number of people regarding housing needs, as you might expect.  While there's no denying that the very attractive interest rates and low home prices create a wonderful buying climate, there are some times when it's just not the right thing to do.

Having your credit score in shape, lowering debt, increasing your savings, and having job stability are all important factors to consider before making the decision to jump into home ownership.  Yes, I know there are people who say, "just do it and worry about that other stuff later," because you always need a roof over your head anyway.

I think that making the plunge before you're really ready for the responsibilities of home ownership can be devastating in other ways. You have to be ready to give up some of your free time to do basic home maintenance - even if that's just snow shoveling and grass cutting. If you're on a busy schedule and want to decompress in your free time, perhaps an apartment is the best thing right now. A condo would give the same benefit, of course, but you should be ready to make the commitment of home ownership all the same.

If you're thinking about buying a home, find out your credit score. Examine your income, your monthly expenses, and how you might be able to save on discretionary expenses. Maybe it's going out for dinner less often, giving up the occasional social or sports event, or just packing a lunch every day.  Most people have some room to economize.

When you're ready, find a good Realtor and a good loan agent. You want to work with people that will give you their professional insight but not push you down a path that isn't right for you. It's true that inventory levels in some areas are not great, but you should still be able to find a suitable property in a few months at the worst. Extreme low end buyers take the longest because so many of those properties are distressed. Again, a good Realtor will make the process much easier.