Is Home Ownership in Your Future?

The state of the housing market in the midst of a global recession is enough to discourage anyone from dreaming of home ownership. After all, the housing market collapse began in full force nationally in the summer of 2007. In spring of 2009, Americans wait for the full effect of the Obama housing bill to secure new money for a mortgage.

While 2009 is a great year to take advantage of the Obama housing incentives, this is also a year when most people don't have the credit to qualify for tough mortgage guidelines. The bottom line is that you have to decide if home ownership is in your future in the next five or ten years and take steps to realize your dream.

Where do you go from here? You may or may not have owned a home in the past. Perhaps the recession has decreased your appetite for homeownership. Here are five things to consider before committing to a long-term goal of home ownership.

What are your prospects down the road? Really, think about how owning a home matches your personal situation. Are you a single parent or a member of a household? What is your income potential? Whether you are single, married, or in a different type of household, you will have to plan ahead for home ownership. As we all hope, Wall Street has learned a tough lesson about easy lending practices.

How will you change your budget? The recession is a good time to get fnancial affairs in order. Think about creating a scaled-down budget you can follow for several years (even after the economic upswing). If you experience an increase in household income in the next few years, you don't want to increase your overhead. The difference in your earnings can

Will you clean up your credit? Logically, good credit will always be a prerequisite for qualifying for a mortgage. This is a good time to research your debts and to start writing letters to the credit bureau. Clear up as many debts as you can. Make payment arrangements you can stick to for outstanding debts, even if you can only pay $5 a month on each account.

Is it productive to shop for a home? Some people would find looking at homes depressing right now given their financial situation. Decide if you can plan a home for the far off future. You can draw sketches, make lists, collect samples of paint, carpet, and tile, and engage in many other kinds of planning for your future home.

In the end, you should not give up on the dream of home ownership. There could be a powerful economic upswing after this recession much like the economic growth after the recovery from 9/11. If you really want to own a home, you will take steps now to prepare for this important investment when economic conditions improve. Hold onto your dream of home ownership. Your current sacrifices will bring future rewards!