Saving up for a house is a great start—but that doesn’t automatically mean you’re ready to buy. A solid savings account is great, but buying a home takes more than that.
You’ll need a steady income, manageable debt, and enough breathing room in your budget to cover not just the mortgage, but everything else that pops up along the way, planned or not.
If you recognize yourself in any of these 10 signs, it might be worth holding off a bit longer.
1. Your Savings Don’t Go Beyond the Down Payment
If your entire savings would go toward the down payment, that’s a red flag. Houses come with hidden costs, broken appliances, unexpected repairs, and insurance deductibles.
Financial planners recommend keeping at least three to six months of living expenses in a separate emergency fund, even after you close.
2. Your Credit Score Isn’t Strong Enough Yet
Lenders care a lot about credit scores. The better your score, the lower the interest rate you’re likely to get—which means you’ll spend less over the life of the loan.
FICO data shows that buyers with scores above 760 usually qualify for the most favorable rates. If your score is under 620, expect higher costs and fewer loan options.
3. You’re Still Deciding Where You Want to Live
Buying a home makes more sense when you know you’ll stay put for at least five years.
If you’re unsure about your location, whether it’s the city, the neighborhood, or even the state, renting gives you room to figure things out without the stress of selling too soon.
4. Your Employment Isn’t Steady
Lenders look for stability. Most want to see a two-year work history in the same line of work. If your job is new, temporary, or unpredictable, taking on a mortgage could be risky.
Wait until your income is consistent before you commit.
5. You’re Not Factoring in the Extra Costs
It’s easy to focus on the price of the house or the mortgage payment, but that’s not the full story.
You’ll need to cover closing costs (which can be 2–5% of the home’s price), insurance, property taxes, and maintenance.
If that sounds overwhelming, you might not be ready.
6. You’re Dealing with High-Interest Debt
Carrying balances on credit cards or personal loans could make it harder to manage a mortgage.
As of mid-2025, the Federal Reserve reported average credit card interest rates of more than 20%.
Tackling those debts first can improve your credit and free up more of your income.
7. You Haven’t Run the Full Budget
It’s easy to focus just on the mortgage payment, but that’s only part of the story.
Have you factored in utilities, property taxes, insurance, maybe HOA dues, and the regular stuff like repairs and upkeep?
If not, your budget might be tighter than you think. Run the full numbers before you commit.
8. You’re Counting on Money That Hasn’t Arrived Yet
Planning your home purchase around a raise, bonus, or some extra income you hope to earn is risky. Life changes.
Jobs change. That money may not show up when you need it. It’s smarter to buy based on what you’re earning right now, not what you expect later.
9. You Haven’t Researched the Local Market
Home values can vary a lot, and prices in some areas have jumped well ahead of wage growth.
According to Harvard’s Joint Center for Housing Studies, nearly half of U.S. metro areas now require six-figure incomes to afford a median-priced home.
Make sure you’re not stretching beyond your means just to get in.
10. You Feel Like You’re Being Rushed
Buying a home should be your decision—not something you do because friends are doing it or social media makes you feel behind.
If you feel pushed to buy before you’re ready, that’s a sign to step back.
Press Pause Before You Purchase
Owning a home is a big commitment, and it should feel like a step forward, not a leap into the unknown.
If several of these signs sound familiar, it’s okay to wait. Keep working on your finances, learn more about the market, and buy when it genuinely makes sense for you.
Being ready isn’t just about having money saved, it’s about having your full financial picture in place.
When that’s true, homeownership will feel like a confident choice, not a risky bet.