I urge my clients to look at home purchase from a financial-planning perspective and ask themselves if they can realistically afford the home they want. This should be the primary consideration when weighing the pros and cons of making a real-estate purchase.
Meet with your financial adviser to review the numbers. Ask yourself: How will this investment affect my financial plan and the other savings goals I have in place? If I lost my job, how many months of emergency reserves do I have set aside to pay my mortgage? The numbers need to work successfully in your financial plan. If they don’t, you might want to reconsider getting back into the housing market.