Logo
August 2, 2023

Are You Ready to Buy?

Young couple holding keys

If you’re trying to decide if you’re ready to buy a home, there’s probably a lot on your mind. You’re thinking about your finances, today’s mortgage rates and home prices, the limited supply of homes for sale, and your current living arrangements. You’re likely juggling how all of those things will impact the choice you make.


While housing market conditions are definitely a factor in your decision, your own life and your finances are even more important. As an article from NerdWallet says:


“Housing market trends give important context. But whether this is a good time to buy a house also depends on your financial situation, life goals, and readiness to become a homeowner.”[1]


How Do You Know If You’re Ready to Buy

Instead of trying to time the market for the “perfect” time, it may help to focus on what you can control. There are a few questions to ask yourself that can give you clarity on whether you’re ready to jump into the homeownership journey.


1. Do you have a stable job?

One thing to consider is how stable you feel your employment is. Buying a home is a big purchase, likely the biggest purchase you’ll make in your lifetime. The home loan you sign for needs to be paid back and that can feel like a big obligation. Knowing you have a reliable job and steady income can help put your mind at ease.


“A mortgage is a big commitment…Wait until your employment is stable before thinking about buying a house.”[2]


2. Have you figured out what you can afford?

To make sure you have a good idea of what you’ll need to save and what you can expect to spend on your monthly payment, talk to a trusted lender. They’ll be able to tell you about the pre-approval process and what you can borrow, current mortgage rates, your approximate monthly payment based on home price, closing costs to anticipate and what percent of the purchase price you should be aiming at for a down payment. What is pre-approval and why does it matter?


The best part is that you may find out you’re closer to your goal than you realized. You don’t necessarily need to put 20% down, especially as a first-time buyer. Every situation is different and your lender can explain more. As Down Payment Resource says:


“A 20% down payment on a home is great, but… Many mortgages require no more than 3% to 5% of the purchase price as a down payment. Plus, there are loans and grants that may help cover these costs. Search for down payment assistance in your area and discuss your results with your mortgage lender…”[3]


Down Payment Resource is a nationwide database that connects eligible buyers and eligible home listings with the homebuying assistance programs available to them. More than 72% of the listings on OneKeyMLS.com are eligible for some kind of down payment assistance.


Read our article busting the “20% down” myth and other myths about the homebuying journey.

Man sitting with laptop on lap and holding a coffee mug

3. How Long Do You Plan to Live There?

It’s important to think about how long you plan to stay put. It takes time to build equity in your home through paying down your loan and home price appreciation. If you plan to move soon, you may not recoup your investment. For example, if you’re looking to sell and move again in a year, it’s likely not the best time to buy. As a recent article from CNET says:


“Buying a home is a good idea if you’re planning to stay put for at least three years. Home values typically increase between 2% and 5% annually, so you could end up paying more in closing costs than you’d earn in proceeds if you sell after only a year or two.”[4]


If there’s a chance you’ll be transferring to a new city with an upcoming promotion you’re working toward, or if you anticipate you may need to move closer to loved ones to care for them, definitely factor these things in to whether now is the time to put down roots.


4. What expert will I consult?

Above all else, the most important question to answer is: what REALTOR® will guide me through this process? This is the FIRST step toward any home purchase, because as real estate experts, they can make the process a lot easier overall. Everyone’s situation is unique. Find a real estate professional that fits your needs and review your situation, your goals and needs with them. They’ll be able to advise you, connect you with trusted mortgage lenders, recommend educational resources, and get you off on the right start toward homeownership..

keys on keyhole

You may be interested in:

A magnifying glass , pen , and a model house are on a wooden table representing a chart.

REALTORS® Confidence Index

March 28, 2025
The Market Outlook from the REALTORS® Confidence Index for sellers increased compared to last month.
A homeowners association document is sitting on a wooden table next to a pen and a book.

Homeowners Associations

March 28, 2025
In many housing markets, homeowners associations (HOAs) and other community associations can be a part of the homebuying (and owning) experience. Here’s what prospective buyers should know:
A woman is kneeling down in front of a house holding a sign that says home for sale.

Marketing Your Home

March 28, 2025
Once you decide to sell your home, your agent will work with you to determine the best strategy to reach potential buyers and attract strong offers. Here are some considerations when marketing your home:
A wooden house with the words property tax written on it

Property Taxes

March 28, 2025
Wherever you buy a home in the United States, property taxes are a reality of homeownership. An agent who is a REALTOR® can help connect you with a tax expert in your area, but here are the basics:
A man is holding a sold sign in front of a house.

Navigating Multiple Offers

March 28, 2025
When your home is on the market, you may receive offers from multiple interested buyers. Offers can vary greatly, and you will need to determine which one is best for you. Here's what sellers should know:
A cardboard box with the words moving day written on it

Innovative Strategies for a Seamless Spring Move: 5 Secrets for Moving Success

April 1, 2024
As spring approaches, many homeowners gearing up to sell their homes face the daunting task of moving. However, with some innovative strategies and the right supplies, you can make the process smoother and more efficient. Here are five tips tailored specifically for home sellers embarking on a spring move:
A magnifying glass is sitting on top of a table next to two small houses.

How Much is My Home Worth in Today’s Market?

April 1, 2024
As spring approaches and the real estate market begins to bloom, homeowners gearing up to sell their homes are undoubtedly eager to secure the best offer possible. The key to achieving this lies in understanding how real estate agents value properties and determine listing prices. Here's a glimpse into the process:
A family stands in front of a house for sale sign

Facts about Closing Costs that Homebuyers Need to Know

April 1, 2024
Before making the decision to buy a home, it’s important to plan for all the costs you’ll be responsible for. While you’re saving for the down payment for your new home, don’t forget you’ll need to prepare for closing costs too.
a boy is sitting on a man 's shoulders looking at a house.

Maximizing Curb Appeal: Your Ultimate Guide to Selling Your Home in the Spring Market

March 19, 2024
As the spring market approaches, prospective home sellers are gearing up to showcase their properties in the best possible light. One of the most crucial aspects of attracting potential buyers is curb appeal – the first impression your home makes from the street. Here's your comprehensive guide to preparing your home for the spring market and maximizing its curb appeal:
Show More
Share by: