One of the most appealing advantages of home ownership is that you own it, which gives you control over your living space instead of a landlord. Other benefits stem from potential tax savings and the build up of equity as your property likely appreciates in price over time. Equity can be used to help put children through college, purchase a second home, or make home improvements. The mortgage interest paid on a home loan is tax deductible, as is the local property tax. If you get a fixed-rate home mortgage loan, you also can invest more wisely knowing your monthly mortgage payment, unlike rent, will not change substantially.
With these advantages in mind, it's important to factor in your psychological and financial readiness for a home. Do you have a steady income? What about debt?
Factor in a down payment and closing costs as well as your credit score to determine your readiness for a home. Set a budget to determine if owning a home will be sustainable for you and your family.
When you can answer all of these questions positively, you're headed towards becoming a homeowner!