Drama-Free RE: Top 10 Ways to Buy a Home Without All the Drama

By Tara-Nicholle Nelson, FrontDoor.com | Published: 4/14/2009

Trying to decide if now's the right time to buy? Review your finances and your lifestyle to determine if owning a home is right for you.

#1: Know when it's the right time in your life to buy.

One of the most stressful issues homebuyers face is the question of when the time is right to buy. Today's would-be buyers are obsessed (understandably) with determining the precise moment in time they should close escrow for maximum tax and investment advantage. But a home is much more than an investment. While real estate does have wealth-building potential, that is only one of several factors that should be in the mix when you decide that homeownership is for you.

My rule is that you should decide whether to buy based on your life and what makes sense for you, your family, your plans and your finances. Then, use the news about what's going on in the market to decide how to buy: what kind of house to buy, what sort of loan to use, how much to offer, and other strategies for executing your homebuying plans.

Most avid observers of real estate agree that this is a great time in the market to buy a home. But what factors need to be considered when deciding whether it is the right time in your life to buy? If you're feeling the itch to own, it might be the right time if some or all of the following describe your life:

• Your credit score is at least 620, and you've saved at least 3.5 percent of the purchase price of your home.
• Your family, lifestyle and/or housing needs are evolving.
• Your current home is becoming a time, money or energy pit.
• Your income has increased and you need a big tax deduction.
• Your job is relocating.
• You have a level of comfort that your income is secure.
• You have a long-term view of homeownership and are okay with staying put for at least 5 years, give or take.
• You feel that you are mature enough to make a major financial and emotional commitment.
• You want to own a home.

On this last point, peer pressure is probably the worst reason to buy a home. The fact that those around you want you to buy is totally irrelevant. If you are not emotionally or otherwise motivated, within yourself, to own a home, then your experience of homeownership will be a burden, not a blessing. Conversely, if you crave to own a home, and are financially equipped to do so, homeownership can be the adventure and experience of a lifetime!

NEXT: #10: Know what to look for in your closing papers >>

MORE DRAMA-FREE HOME BUYING RESOURCES:

Drama-Free Home Buying Main Page

Don't Freak Out About...

• The home inspection reveals some nasty surprises
• Your home loan falls through during escrow
• You get outbid for the house you want
• Your Realtor quits and leaves you hanging

Been There, Done That

• "I want to buy a foreclosure"
• "My partner and I can't agree on buying a fixer-upper"
• "I'm overwhelmed by the commitment of homeownership"
• "I lost my job while in escrow"

THE COMPLETE DRAMA-FREE REAL ESTATE SERIES:

• Drama-Free Real Estate Guide
• Drama-Free Home Buying
• Drama-Free Home Selling
• Drama-Free Home Financing

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