Many people will have differing opinions about when it's supposed to be a great time to buy a house. The fact is that there's really no set of rules or a table of formula you can follow to ensure the auspiciousness of your purchase. The answer depends heavily on your current personal and financial situation, and nobody can have the best insight into that other than you. One has to recognize one's own seasons and look out for certain indications that it is the right time to make this major purchase. When the timing is off, you can expect that there will be a lot of issues which will make the whole process more difficult than usual. Here are a few things you can keep in mind when making the decision.

When is renting better than buying?

Since renting is cheaper (in the sense that rent is cheaper than mortgage payments, generally) it's good to consider the fact that people can afford to be in a better neighborhood and in a decent house when they rent. If you currently don't have a stable job, if you move around a lot, or if you simply don't have much money saved yet for a downpayment, this could be a viable option for you. At least it gives you a bit more disposable income to help you save for your downpayment, as long as you manage your finances well.

When do you break the piggy bank and go for the plunge?

Owning your own piece of real estate can be quite a smart choice, but only if done on the right time. There are times when it's not very ideal to buy a house yet. For example, people who are just starting out in life and they buy properties may find it a bit harder to move to a different location if there are changes in their life that happen. Like getting married, getting promoted, changing careers and such. When you're just starting out and you really do want to buy a house, it's great if you can find a house that has a good resale value so that you can sell it at a competitive price when you really need it. It would be a hassle to maintain a house you won't be able to live in.

If you're at a point in your life when you know you're making stable income and you've worked on your credit score consistently as well as you've saved up enough money in the bank to cover downpayment and unforseen expenditures, then it may be time to consider buying a house. It's a great experience to go out home shopping with the thought that you're ready for it. If you know that your credit score needs to be worked on, it's very important that you work on it several years before you actually set out to buy a house. Working on a credit score is best done over several years.

When thinking about whether or not to buy a house, coming to terms with the facts of your life is very important. One simply cannot skip this and go straight to shopping for homes. Be realistic about your financial and personal situation and you'll end up making a sound investment and the process will go easier for you.