If you plan to move out of an area in the next few years, don’t buy a home- you may not get enough of a rise in value to cover the cost of selling when you move. When that happens, you pay money out of pocket for the privilege of selling your house!
If your credit score is junk (650 or lower), you CAN get a loan, but it’s better to take the time to improve your credit score to make your monthly payments more affordable.
If you can outsave the market, don’t buy yet! This means if the market is going up only minimally each year, but you can save a larger dollar amount for a down payment, it’s in your best interest to save until you can have enough money for 20% down and not have to pay mortage insurance.
Lastly, if you can live happily with family for free or for very low rent, stay there and save up money for a larger down payment and be able to buy the house you really want!
If you want to know if you should buy a home now or wait, I do one hour free consultations to help people decide whether or not it’s a good time to buy for you!