If you're thinking about buying a home, I'm sure you've got a lot going on in your head. You're probably thinking about your finances, the current mortgage rates, the prices of homes, and the fact that there aren't a ton of homes available for sale. It's a lot to consider, and you're probably trying to figure out how all of these things will affect your decision.

When it comes to making a decision about buying a house, it's easy to get caught up in thinking about the state of the housing market. But let me remind you that your own life and your financial situation should be top priorities. They might have an even bigger impact on your decision than the current housing market conditions. So, before you jump into any real estate decisions, take a step back and consider how your life and finances align with your housing goals.

““Housing market trends give important context. But whether this is a good time to buy a house also depends on your financial situation, life goals and readiness to become a homeowner.””

— NerdWallet

Instead of stressing about when to enter the market, why not shift your focus to what you have the power to control? Let me provide you with a few simple questions that can help bring some clarity and determine if you're prepared to take the leap.

1. Do You Have a Stable Job?

When you're thinking about buying a home, one important thing to think about is how secure you feel in your job. It's a major decision and signing up for a home loan means committing to repay it. That can feel like a huge responsibility. But having a stable job and steady income can really give you peace of mind.

““A mortgage is a big commitment . . . Wait until your employment is stable before thinking about buying a house.””

— NerdWallet

2. Have You Figured Out What You Can Afford?

If you want to have a clear idea of how much you need to save and what you can expect to spend on your monthly payment, it's a good idea to have a chat with a reliable lender. They can give you all the details about the pre-approval process, how much you can borrow, the current mortgage rates, and give you an estimate of your monthly payments. They'll also let you know about the closing costs you should expect, the percentage of the purchase price you'll need for a down payment, and any other important information you may need.

The great thing is, you might just discover that you're actually closer to reaching your goals than you think. You don't always have to come up with a 20% down payment, unless your lender or loan type specifically requires it.

““A 20% down payment on a home is great, but . . . Many mortgages require no more than 3% to 5% of the purchase price as a down payment. Plus, there are loans and grants that may help cover these costs. Search for down payment assistance in your area, and discuss your results with your mortgage lender . . .””

— Down Payment Resource

3. How Long Do You Plan to Live There?

Another thing you should consider is how long you want to stick around in your new place. You see, it takes time to build up equity in your home by paying off your loan and seeing the value of your home go up. If you're thinking of moving again real soon, like within a year, it might not be the best idea to buy a home right now.

““Buying a home is a good idea if you’re planning to stay put for at least three years. Home values typically increase between 2% and 5% annually, so you could end up paying more in closing costs than you’d earn in proceeds if you sell after only a year or two.””

— CNET

Let's talk about your future plans. If you've got your eye on a promotion that may require you to move to a new city, or if you think you might need to be closer to your loved ones to take care of them, it's definitely something to consider.

When it comes to buying or selling a home, the number one thing you need to ask yourself is this: do you have a group of real estate experts by your side? If the answer is no, then it's time to start looking for a reliable local agent and a lender. These two folks will be your go-to team as you navigate the real estate market.

Bottom Line

If you're thinking about buying a home but not sure if you're ready, these questions can give you some guidance. However, when it comes down to it, the most trustworthy and reliable source of information is the assistance from experienced real estate professionals.