*** - [ ] 1. How long is my time horizon? - Home prices can recover more slowly than the stock market. Plan to be in your home at least 5–7 years if you purchase a house. - [ ] 2. What's the "sizzle" of my location? - Look at the time houses are in on the market, schools in the area, and opportunities to gauge the temperature of your housing market - [ ] 3. What is my family situation? - Know what your family will look like in the future to anticipate future housing needs, including number of rooms and amount of space - [ ] 4. Do I have a good job security? - Where you buy a home is often tied to where you work. If you don't have enough job security to know you'll be in the area for a while, it may not make sense to buy home. - [ ] 5. How big is my emergency fund? - As a homeowner, you are responsible for all maintenance and repairs, so you may need to reevaluate the size of your emergency fund. - [ ] 6. Do I have an adequate down payment? - If you are buying your first home. It is okay to put down 3-5%. If it is not your first home, you need to put down at least 20%. - [ ] 7. Do I have stable cashflow? - You need a stable income to ensure you can afford not just your mortgage payment, but all housing expenses. Aim to keep total housing expenditures below 25%. - [ ] 8. What is my credit score? - Having a great credit score is vital to getting the best rates. If you aren't buying yet, you still have time to build your credit. *** **References**: - [Money Guy vs. The World! (Are YOU on the Winning Team?)](https://www.youtube.com/watch?v=vxAfJwFUPPQ&t=1208s)