In many areas of the country, buying a home has been a competitive and fast-paced market. In addition, rising interest rates may be putting buyers in a tough spot, as more of their mortgage payment will go to interest than in years past. While these factors put a lot of pressure on buyers, it is important to slow down and ensure that you are ready to purchase in the first place.

There are two questions you can ask yourself:

• Do I have an emergency savings? A home opens more opportunity for emergencies to occur. From leaky windows to broken furnaces and appliances, it is crucial you have an emergency savings before you purchase. Remember, stylistic updates would not count as an emergency, so any renovation plans should be saved for separately.

• Can I afford to make the purchase without taking a distribution or loan from my retirement plan? If you need to dip into your retirement to make the purchase, it might be best to postpone buying a home. Taking a pre-retirement distribution will result in taxation and penalties. Likewise, taking a loan may result in paying more in taxes over time. Furthermore, you would be removing the money from your future retirement.