Don’t let the media and your parents persuade you otherwise: not everyone should purchase a Dallas County home. In fact, some individuals are much better suited to rent than to purchase.

Although purchasing your first home can provide a windfall of advantages, there are perhaps just as many advantages to renting if you are not financially or mentally prepared to become a homeowner.

Giving the idea of home ownership thoughtful consideration will eliminate purchasing a home that you’re simply not ready to handle. In fact, purchasing a home when the time isn’t right can cost you much more than regret: it can cost you money, frustration and loads of hassle.

Why now may not be the time to purchase your first Dallas County home:

• You don’t have a large enough down payment – Unlike just a couple years ago, lenders are now demanding large down payments, upwards of 20 percent (or more for condo purchases). If you don’t have a large down payment ready and waiting, chances are a lender simply won’t approve you for a home loan. In addition, you also don’t want to fork over a large down payment and then be left without any money in your savings, so think ahead and consider whether you can afford to pay out a large down payment at this time.
• Your credit is questionable – Just like a down payment, lenders are now requiring glowing credit scores for borrowers, so if you haven’t achieved a great credit score, now may be the time to work on your credit and forgo applying for a home loan. And remember: the better your credit score the better rate you will be able to snag on a home loan. Order a copy of your credit report from all three of the major credit reporting agencies and go from there.
• Your debt is considerable – Many young individuals find themselves bogged down in quite a bit of debt. From student loans and car loans to high credit card debt, many younger individuals simply are not in the position to apply for a mortgage due to their high level of debt. Called a debt-to-income ratio, most lenders determine the amount of debt you have and figure out what percentage of your income goes to debt. If your debt-to-income ratio is too high, you will likely be turned down for a home loan, regardless of your credit.
• You haven’t found the perfect job – If you haven’t found the job where you can envision yourself staying, at least for the next few years then you may want to think twice about purchasing a home. Renting in the meantime will afford you the freedom to move to your next job opportunity, wherever it may take you.