There are a few questions you should ask yourself:
1. Can you afford to buy a home? I found this AWESOME Buy vs. Rent calculator that can help you figure out if it'd be worth it for your particular situation. Also ask yourself, do you have the credit score to get a loan? Do you have at least 6 to 12 months savings to service your debt in case of sudden unemployment or another unexpected life change? You certainly don't want to drain all of your savings with a downpayment for a house!
2. What is my 5 year plan? Most real estate professionals and financial advisors will agree that you need to own your home for at least 5 years to make it worth it. Are you going to have any major life changes? Marriage, divorce, career change, growing your family? All of these things might help you decide if buying is better than renting (or vice versa).
3. Are you prepared for the cost of homeownership? Maintenance, property taxes, homeowners insurance... it's not just a mortgage!! However, renters are certainly not exempt from some of these things either!
4. I like to think in monthly terms. Find a home you'd like to rent and a home you'd like to buy. Is the rent more than the mortgage? Don't forget to add all the other costs to your monthly bill for renting or buying (from question 3).
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