Buying a home is the biggest purchase most Americans will ever make, spending hundreds of thousands of dollars in one chunk. In addition, there are a whole host of associated costs — insurance, maintenance, taxes, furnishings, and on and on that make this a gigantic financial issue for all but the wealthiest of us. The impact buying a home can have on a family’s finances is enormous, so it’s imperative that we get it right.
Conventional wisdom used to say that buying a house was a financial no-brainer. That was when housing prices “always went up” and owning your home was the bedrock of solid money moves.
Then along came 2008 and blew conventional wisdom out of the water.
So the home buying decision is as tough and as important as ever. You want to get it right. You MUST get it right if you want your finances to benefit from a home purchase. And you certainly don’t want it to be a drag on you financially, because the size of the transaction is so large that this one buying decision can sink all your finances if it’s not done properly.