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Should I Buy a House? How to Tell If You’re Ready
Take an in-depth look at your goals and priorities, as well as your finances, before you begin house hunting.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
Kate Wood Lead Writer/Spokesperson | Homebuying, mortgages, student loans
Kate Wood is a mortgages and student loans writer and spokesperson who joined NerdWallet in 2019. With an educational background in sociology, Kate feels strongly about issues like inequality in homeownership and higher education, and relishes any opportunity to demystify government programs. Prior to joining NerdWallet, she wrote about home remodeling, decor and maintenance for This Old House magazine.
Johanna Arnone Assigning Editor | Mortgage lenders, homebuying, home equity
Johanna Arnone helps lead coverage of homeownership and mortgages at NerdWallet. She has more than 15 years' experience in editorial roles, including six years at the helm of Muse, an award-winning science and tech magazine for young readers. She holds a Bachelor of Arts in English literature from Canada's McGill University and a Master of Fine Arts in writing for children and young adults. Practice making complicated stories easier to understand comes in handy every day as she works to simplify the dizzying steps of buying or selling a home and managing a mortgage. Johanna has also completed coursework in Boston University’s Financial Planning Certificate program. She is based in New Hampshire.
Abby Badach Doyle Lead Writer | Homebuying, mortgages
Abby Badach Doyle is a home and mortgages writer for NerdWallet. She is passionate about helping consumers understand the homebuying process and feel confident about their finances. Her work has appeared in The Associated Press, The Washington Post and others. Abby resides in Pittsburgh, a city known for its neighborly spirit and vibrant communities.
You may be ready if you have steady income, decent savings and you’re ready to stay in one place for a while.
Consider your willingness to handle (or pay for) home maintenance, landscaping and major repairs.
If your credit score needs work or you’re paying off major debt, it’s often smart to tackle those goals first.
Despite any pressure you might feel, you don’t need to buy a house to “be an adult.”
Buying a house is one of the most significant financial decisions you'll ever make. But beyond altering your financial picture, buying your first home also represents a substantial lifestyle change for most people. In terms of the effect on your day-to-day, homeownership is right up there with finishing school or having a child.
If you're wondering whether you're ready to buy a house, here's a cheat sheet showing what you might factor into the decision. In some cases, all you need to do is run the numbers; others may require some soul searching. Once you've gone through this list, you'll have a better idea of whether you're ready to buy a house.
Let's start with five signs you might be ready to buy. Of course, this isn't a checklist or a quiz, so it's not like all five are must-haves. But if these sound like you, you may already have started down the path to homeownership.
You've got a steady income
Whether you're self-employed, work a 9-to-5 or have some combination of the two, you've got money regularly coming in. That's important for obvious reasons, like paying your bills, but also for getting a home loan. Your income is one way mortgage lenders gauge whether you'll repay the loan.
Lack of steady employment or an incomplete employment history make it harder to qualify for a mortgage. Most mortgage lenders will request documentation showing an employment history of at least two years.
🤓Nerdy Tip
If you’re self-employed, retired or have inconsistent income, you can still get a mortgage. Look into non-qualified mortgages, known as non-QM loans. These have more flexible requirements, but down payment requirements and interest rates tend to be higher.
Buying a house is a commitment; if you decide the place isn't working out for you, selling a home is much more involved and expensive than, say, breaking an apartment lease. You want a place where you'll be comfortable now but also one that could meet your future needs. For example, if you know you want kids, it could make more sense to shop for a three-bedroom home now instead of struggling to sell your starter home and upgrade when you've got a toddler (or two) underfoot.
You've built up savings for a down payment
Saving up for a down payment is one of the biggest hurdles on the path to homeownership. But contrary to popular belief, you don't have to put down 20%. Depending on the type of home loan you're using, the typical down payment on a house is usually 3% to 10% of the purchase price. And home loans with no down payment are available, too.
You’ll also need money for closing costs. Those will run about 2% to 5% of the total price. Having savings socked away puts you much closer to homeownership.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
500500
Min. down payment
3.5%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
3.5%First-time home buyers may qualify for 3% down mortgages at Rocket.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
620620
Min. down payment
0%Veterans United offers VA loans for as little as 0% down.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
620620
Min. down payment
0%On VA loans, NBKC offers down payments as low as 0%.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
4.0
NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
500500
Min. down payment
3.5%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
620620
Min. down payment
3%NBKC offers conventional loans for as little as 3% down.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
3%Rocket Mortgage offers conventional mortgages with as little as 1% down.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
3%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
4.5
NerdWallet rating
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
N/ANew American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
N/ANew American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
500500
Min. down payment
3.5%New American Funding works with down payment assistance programs in 14 states, including California, Texas, Florida and Illinois.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
580580
Min. down payment
3.5%First-time home buyers may qualify for 3% down mortgages at Rocket.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
620620
Min. down payment
0%Veterans United offers VA loans for as little as 0% down.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
NerdWallet's ratings are determined by our editorial team. The scoring formula incorporates coverage options, customer experience, customizability, cost and more.
Min. credit score
620620
Min. down payment
0%On VA loans, NBKC offers down payments as low as 0%.