Regardless of how ideal the market may seem, it’s still a good idea to sit down with your real estate agent and think about how you see your life in three or five years and ask yourself some pointed questions.
Can I afford it?
When purchasing a house there will be a notable impact on your finances, so you need to make sure that you’re prepared for it. You will need a steady source of income t
o insure that you can pay your mortgage payment. You’ll also want to minimize any debt or financial obligations that can reduce your ability to afford a mortgage. Finally, you’ll need income or savings to afford home repairs, furniture and other assorted expenses.
Try creating a budget for the monthly mortgage payment and home ownership costs, such as general maintenance if you buy a single-family home or homeowners association fees if you buy a condo.
Am I mortgage-worthy?
Say you saved enough cash, but what about your credit? It’s not a secret that getting a mortgage these days is harder than it used to be. Lenders are looking closely at all documentation of your income, debts, assets and liabilities, to make sure you don’t exceed the maximum debt-to-income ratio. The better your credit score, the better your odds of landing your dream home with a reasonable interest rate. The key is to review your financial situation before you decide to start checking out the open houses.
Is it worth the money?
You may find yourself spending 
slightly more than you expected to, but in the end it may be worth it if there are already updates done and appliances staying with your home. In other words, the place in which you live is an investment and the money will always be relevant.
If I buy with another person, how will this affect me?
Buying real estate with another person has its perks, if you both have stable financial situations. By combining cash and resources, you're likely to get a bigger, better place than you each would as individual buyers. Plus, when you're starting out, it helps to share the financial burden with someone else.
But before you start house hunting together, sit down, lay all your cards on the table and get the answers to these important questions. Whether you're buying with a spouse, domestic partner, relative or friend, setting the ground rules first will save you both a lot of headaches in the future.