More than just an investment

Buying a house can be exciting, challenging and a little scary—all at the same time. For most of us, it's the biggest purchase we'll ever make. And for many, it's the fulfillment of a dream.

Certainly, financial considerations are a big part of buying a house. But before you get caught up in sale prices and potential appreciation, remember this: Buying a house isn't about making your money grow. It's about the quality of your life.

Making sure you're ready

Once you've decided you really want to own your own home, there's a lot to consider to make sure you're ready and able to take on this kind of financial responsibility. Start with the following:

• Understand whether buying or renting makes more sense for you.
• Calculate how much you can afford.
• Find out which type of mortgage best suits your needs.
• Consider additional costs.

No matter what your motivation for buying, getting your foot in the door of your new home can be difficult. In order to avoid the need for private mortgage insurance, you will likely need to make a down payment of at least 20 percent of the purchase price. Are you saving enough? Have you prioritized your savings? Make sure you're on the right track by reviewing these savings fundamentals.