When is it time to stop renting a home and seriously consider buying your own place? That's a personal question and a very personal decision -- it really depends on your lifestyle, your finances, your employment plans, and many other factors that could make buying a house a really good idea, or an absolutely terrible one. To figure out where you are on the homeownership spectrum and decide what the best move is for you, personally, here are 5 signs that you should probably keep renting and 11 indicators that it's time to think seriously about buying a house. ## Signs that you should keep renting You're not confident that your income will increase in the future In many markets, you don't actually need to make a lot of money in order to buy a house, but it's always smart to go into homeownership with the confidence that your income and earning power are only going to go up in the near or distant future. ## Homes in your area take a long time to sell Some markets are hotter than others, and when the time comes to sell your house, it's a lot better to be in an in-demand market than to have a house that takes a long time to sell. ## You want to move around to different neighborhoods or different areas There's no sense in buying a house if you don't know whether you even want to stay in the neighborhood! ## You have a lot of debt and no significant savings It's not impossible to buy a house when you have debt like student debt and credit card debt -- but if your level of debt is overwhelming, then you won't get the best possible deal on your mortgage loan because your credit will likely be lower than it could be. ## The kind of place you want to buy is unavailable Even if none of the above applies to you, it still might not be a great time to think about buying a house. # Signs that you should consider buying ## You know you'll be in the area for some time Whether it's because you've fallen in love with a neighborhood or market and can't imagine leaving, or because the job opportunities in your city are better than anywhere else in the country, when you know that you want to stay in an area for a long time, it's a good idea to think about buying a house there. ## You don't have any debt Mortgage lenders look at your debt-to-income ratio when they consider issuing a loan, and this can influence your mortgage interest rate, among other factors. ## You have an emergency fund Another way you can show mortgage lenders that you're a good prospect for a loan is by increasing the amount of money in your savings account. ## You have some down payment money saved One of the biggest expenses involved in homeownership is the down payment. ## Your credit is good One of the biggest ways that lenders assess your ability to pay back a loan is by looking at your credit score. ## You feel comfortable tackling basic home repairs and own some tools to do it Renters have it easy in that when something happens to the place where they're living, they can call someone else to come and fix it -- and they won't be charged for it. ## You can't rent an equivalent home for the cost of buying This might be hard to determine, but you can look for online calculators that will let you punch in several different numbers and fields. ## You want to customize your home Although renting does have its perks, one thing that a lot of renters don't like is the fact that the home isn't really theirs, and they can't treat it as such. ## You'd like a little more privacy Most of the time, a house or condo you buy is going to have more privacy than one you're renting. ## You want more stable monthly payments Although your property taxes will go up as home values increase, as a homeowner, your mortgage payment is going to be stable over time -- despite inflation. ## You feel emotionally ready Buying a house can feel in many ways like getting married: it's both exciting and terrifying.
