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Chase you dreams now - or later?

If you are torn between renting and buying a home, here are 7 questions that you can ask yourself to help determine what would be best in your situation.

1. Do I plan to stay in the area where I am looking?

When planning to buy a home, you must know that you are planning to stay in that area for an extended period of time. If in your line of work there is a great chance of relocation/transfer or you are dissatisfied with your job and other jobs in that area, renting might be a better solution because it is short termed.

2. Do I plan to add (or subtract) people in my family?

If you foresee changes in your family, buying can be somewhat challenging. You would want a house that would fill and fit your needs.

A small house might be a wonderful for a couple, but if children come, what then? Is there room for Junior or will you have to give up your home office for the nursery? Do the schools in that area suit Junior's needs? Is the neighborhood child friendly?

On the flip side, are your chicks leaving your nest soon? Will you be left a home that is too much' home? Feeling lonely in your large empty house might not be much fun, especially when you receive home heating/cooling bills! Will you be able to use the area to your advantage when the kids have left?

3. How's your credit?

Credit, credit, credit! Do you know your score? Do you know if you have any forgotten bills or loans? If you don't know the answer to this, buying might not be a good idea. Knowing your credit score and your credit history is important when it comes to buying anything, buying a house especially.

Rates will depend on your credit history. Ability will depend on your credit history. And, you will need to have a proven record so if you don't have much of a credit history, that can be a problem.

4. Have you paid ANY of your bills late within the last year?

If so, this will make lenders nervous. They might not feel comfortable lending money to someone who might make house payments late-or not at all! Lenders desire those with stable payment histories.

5. Do you have money for a down payment?

It is typical for the buyer to put a minimum of 10% down! That means if your dream house has the price tag of $200,000.00, you will need about $20,000.00 as a down payment.

Without the down payment, it can make your ability to purchase limited. This is not to say that buying without a down payment is impossible, it isn't. The cost to you might be greater in both the short and the long term.

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