Owning a home yourself instead of renting is not just a dream for everyone in the world. It’s a long-term commitment that requires solid finances, not just how much money you own.

If any of the following appear to you, delay your purchase

Personal finance experts say you must make sure the monthly payment for a home purchase does not exceed 30% of your total income.

“If the number is more than that, your finances will be tight and vulnerable if you encounter unexpected problems,” authors Harold Pollack and Helaine Olen wrote in the financial book “Index Card”. Set a goal to spend no more than one third of your income on housing.

Your emergency fund is not a payment.

“We can all face unexpected financial failures. Someone may be sick and the insurance company denies a medical claim … However, life goes on, the bank still asks for money if you buy a mortgage. If you do not have an emergency fund and try to own a home, you will probably find yourself in financial turmoil one day, ”author Harold Pollack said.

You do not have any savings

Even if you have an emergency fund, you still have many goals to accomplish.

“If you’re saving a ton of money each month, that means your cash flow is in good shape, which is a good sign that you’re ready to buy a home,” Roberge said.

If you can’t save anything but mortgage payments for your home, consider stopping buying a home until your cash flow is more stable.

You may not need to pay any deposit to own a home, but if you can’t afford to pay at least 10% of the total value of the house, consider buying a home. Ramit Sethi finance said. The best deposit you should pay for a house is 20%.

“The more you pay for your initial deposit, the lower your monthly mortgage payment will be. As a result, you will need to borrow less money to pay off the entire house. This will save you tens of thousands of dollars over the life of the loan. ”

It is important to consider housing budgets in the context of future goals. “Consider the next few years and what you will do,” Roberge said.

If you do not have any other large expenses, it will be easier to prioritize payment for your home. Consider this: If you can afford to pay $ 1,000 a month, but you’ll have a baby next year, can you still afford the same amount? If not, it’s time to make your preferred choice.

Some small debts are not a problem when buying a home. If that debt is a significant amount of money, it could hinder your ability to buy a home. Pollack and Olen write: “If your debt is high, home ownership will be very difficult.”

When you apply for a mortgage, you’ll be asked for everything you owe – from car and student loans to credit card debt. “If the amount of debt exceeds 43% of income, you will have difficulty trying to buy a home and are at high risk of default in the future.”