It’s been drilled into your head that homeownership is the American Dream, right? Understandably, buying a house is billed as one of life’s most important milestones. But what never seems to come up is that it’s not the right decision for everyone. While some Americans wouldn’t dream of not owning a home, a recent Bankrate survey found that 44 percent of homeowners—and 63 percent of millennial homeowners—actually regretted their home purchase.
To help ensure you never fall into that category, these are the 8 questions you should ask yourself before buying a house for the first time.
What is my motive?
A home will likely be the largest purchase you’ll ever make—and it’ll drastically affect your lifestyle. So FOMO, or trying to keep up with the Joneses, should not be a determining factor in your decision. Even if all of your friends are homeowners, that doesn’t mean it’s the right choice for you. (Cue your parents asking, “If everyone jumped off of a bridge, would you jump off, too?)
With that said, you shouldn’t purchase a house thinking it will solve problems that could follow you wherever you live. Let’s say you hate cigarette smoke, for example, and in every apartment you’ve ever rented, there was a smoker living next door. It may seem like buying a house will be the ticket to stop smoke from seeping through the walls. But what happens if you buy a house and end up next to a family of smokers? Replace smoking with loud music or whatever else drives you crazy—just know that buying a house won’t always make neighborly problems go away.
What is my magic number?
Your credit score could be a major factor in your homebuying decision—and a good credit score makes a world of difference. “A lower credit score could impact your interest rate and even your ability to secure a home loan at all,” warns Bonnie Heatzig, a realtor in Palm Beach, Florida. “On the other hand, the higher your credit score, the better the interest rate and mortgage terms for your new home.”
One factor that determines your credit score? Debt. Heatzig recommends, for example, that you pay down credit card debt before you even attempt to start the mortgage loan process. “Pull a copy of your credit report and know where you stand,” she says.