Should I buy a house?


Home ownership has always been the American dream and a milestone to adulthood. But with the recession in 2008 and the wave of foreclosures that followed, many young Americans delayed becoming first time home buyers. Purchasing a home is the biggest investment you will ever make, and it is important to educate yourself before diving in.

Do you have mixed feelings about buying a home? The Scheib Team is here to help. When determining whether it’s the right time to buy, there are several factors to consider.


  1. Where are you financially?

Looking into your current financial state is the most important factor when determining if you are ready for homeownership.

Do you have the down payment?

The, “I need 20% for the down payment,” is a myth that has been passed from generation to generation. And there is a good reason to it. Without the 20% down payment, buyers are subject to paying private mortgage insurance and that adds to your monthly housing cost. The “20% down” myth is unique to conventional loans. There are so many other loan options that charge mortgage insurance differently than Fannie Mae or Freddie Mac, such as, FHA Loans, VA loans, USDA loans, and jumbo loans.

Let’s reset your mind. Instead of questioning if you have enough for the down payment, ask yourself which loan is most appropriate for me. Speaking with a lender and knowing your options is the key to knowing if you are ready to be a homeowner.

  1. Your Credit Score

Your credit score is just as important as the state of your finances. This number determines if you can be approved for a mortgage and your interest rate.  Everyone would love to have a score of 720 or above and get the best interest rate possible, but not everyone fits into that category. But if your score is lower, don’t let that detour you. There are loan programs available for consumers with not so perfect credit.  

If you chose to hold off on homeownership due to your credit score, consider working on trying to improve it. You can improve this by paying down your debit, making payments on time every month, avoiding opening new lines of credit, and having inaccuracies removed. When you speak with a loan officer, they will be able to help you with getting your score back to where it needs to be and guide you on the path to being able to qualify for a mortgage.

  1. Do you have an emergency fund?

Before purchasing a home, you want to make sure you have a plan to pay your mortgage in the event something doesn’t go as planned, such as a layoff or medical problem. An emergency fund should be set aside before you purchase a home. This can also come in handy for unexpected repairs. If you own the home, you can no longer call your landlord to fix it.

  1. Are you committed to staying in one place?

Deciding if you should buy or rent can be determined in part by your commitment to the area you live. Everyone gets to a point in live where they want stability. Owning your own home gives you a set neighborhood and community. Before you make the decision to buy, ask yourself, do I plan on being in this area for at least five years. If you have a job or career where a transfer is in the foreseeable future, it’s probably best to rent instead of buying a new home.


Purchasing a home is a big step. All of these factors need to be considered when deciding if it’s the right time to buy and it is very common to feel nervous with this type of decision.  However, if you are financial and emotionally ready, you should take the steps to homeownership. Whether renting or buying is the best choice for you, The Scheib Team is ready to help. Give us a call today and let us exceed your expectations.