Buying a house entails that you intend to invest a great part of your financial resources. On one side are people who insist that homes are more inexpensive than they previously used to be. Decreased home prices and lower interest rates have made buying a better option than renting. On the other hand, some people argue that the housing recession will continue and make the prices fall even more.

The existing interest rates, mortgage options, and housing market provide rare opportunities to potential home buyers. Your decision regarding buying a home now or later majorly depends on your financial circumstances.

Following are some important questions that you should ask yourself to decide if you should buy a home now or later.

1. How Good is Your Credit Score? Your credit score determines your interest rate on a fixed rate mortgage or an adjustable rate mortgage. If you think that your credit score can provide you a lower interest rate, then ponder over the mortgage terms. Use your own financial skills or ask your mortgage broker about the best interest rate that you can get.

2. How Financially Stable are you? The act of investing monetary resources in buying a home requires you to be financially stable. Your mortgage broker may consider you a risky client if you have a past record of impulsive investments, bad credit history, and default payments. Unstable financial conditions can also make it difficult to get a pre-approval to buy a home.

3. Do you have Saved Finances? You should save significant amounts of money if you intend to buy a home in the near future. The condition of making at least 20% down payment requires you to take a lot of money out of your savings. Anything less than 20% will increase your mortgage interest rate thus, making you pay more as monthly mortgage payments. In both situations, your financial savings are likely to be affected.

4. Can you Manage Housing Expenses? Owning a home means you have to bear all expenses for maintenance and repairing yourself. In addition to housing expenditures, you have to take care of different chores including security, gardening, and plumbing.

If you have saved significant amounts of money to bear expenses of down payment, monthly mortgage payments, and closing costs, then you should not waste time and start shopping around to buy a home. However, if your finances are not able to meet these expenses, it is better to take some time to get your financial resources in order.