Skip To Content

    8 Signs You're Ready To Buy A House (and 5 Signs You're Not), According To An Expert

    To rent or buy, that is the question.

    Buying a home will likely be the biggest purchase you ever make — and knowing when to buy and when to sit tight and rent can be tricky.

    To get a better idea of when you should go for it (and when you shouldn't), we talked with an expert at Realtor.com.

    Signs you should buy:

    1. Houses in your area are on the market for a long time and their sale prices are dropping.

    Man looks at listings on his laptop

    2. You've heard of other buyers submitting offers under the asking price or requesting concessions from the seller.

    Couple holds the keys to their house

    3. You have enough money to cover the down payment, closing costs, and then some.

    4. You're already pre-approved for a mortgage and can act fast.

    Woman shakes hands over a desk

    5. Your mortgage payment is less than what you pay for rent. (That said, times are a-changin'.)

    Couple reviewing their finances

    6. You're sick of giving money to your landlord and want to build equity.

    7. Your credit score is in the low-to-mid-600s (or higher).

    Two people review a credit score on a phone

    8. You plan to be in your home for at least five years.

    Couple moving into their home

    Signs you should rent:

    9. You don't have enough cash to cover the 20% down payment and the closing costs.

    10. Buying a home will make you house poor.

    Family stands in an empty house

    11. Interest rates remain high.

    Woman looks at her computer with concern

    12. You aren't sold on the area and like to move around a lot.

    13. You don't need to buy right now.

    Couple sitting in their living room