Given the difficulties in this market, with short sales and foreclosures (REOs or bank-owned properties), knowing if you are really ready to buy is critical. Not everyone is prepared for what they have to deal with when buying a home.

And certainly being financially able is essential or you are wasting your time.

While you may be thinking you are ready, your behavior may suggest the time is not quite right.

One question to ask yourself is if you are REALLY ready to buy or are you just looking right now?

The questions below will help you determine if you are truly prepared to buy… psychologically,emotionally and financially.

• Do you have  your current home to sell?
• If you went out today and found your dream home, are you able to place competitive offer the same day? Good homes don’t stay on the market long, even in the buyers market.
• Why do you want to buy a new contraction house? Do you have some good reasons (space, financial psychological) for wanting to  deal with new contraction?
• Will you be paying cash or have you arranged for financing? If cash, have you considered closing cost?
• You know yourself better than anyone. Are you really emotionally, psychologically and financially ready to go? How bout your significant other and all of your relatives?  This is a tough one for the first time buyer, and an “unsure answer” or “I’m scared” is perfectly alright since it’s a bit step and being nervous about it is to be expected.
• Do you have a rental agreement you can break or are you stack for an extended period of time?
• How well informed are you about the market in terms of inventory, pricing, marketing time, interest rates, etc.? It’s hard to get started on the process if you know nothing about it or the local market.
• Do you have a good idea of what you are looking for and what you are willing to compromise, how about your spouse? Do you agree on what in a must and what is just nice to have?