A home is a very important part of every human being’s life. It is a source of great comfort and stability. This is the reason as to why choosing to purchase a home is normally the biggest financial transaction a person will ever make in his or her entire life. It is thus then very important that this decision is reached at with a lot of caution.

It is vital that the right amount of research is conducted before the decision is made and that all required preparations are made in time. It is granted that every home buying transaction is unique in its own way. However there are ten very common things that apply to every home buying transaction.

Buying a home is one of the most expensive investments in most peoples’ lives, and therefore selecting the most fitting mortgage type and negotiating a fair purchase price should be paramount decisions. It’s commonly accepted that home buyers can afford mortgages costing up to 30 percent of their monthly incomes, and paying more than that amount may set buyers up for financial hardships.

Buyers who keep their monthly mortgage costs low are typically able to pay their principals down ahead of schedule, saving them interest costs. Some buyers who’ve recently sold a home or have a great deal of savings may opt to purchase a home outright with cash, avoiding mortgage costs altogether. But which approach is the smartest decision for a home buyer?

There is no widely accepted right or wrong answer. The best answer boils down to home buyers’ circumstances and their ultimate goals. Some buyers simply do not want the burden of debt and would prefer to own their homes, sacrificing available cash. Others prefer to invest elsewhere, save for retirement or vacations, while aggressively paying down a mortgage. Each method of purchasing a home has a list of benefits and drawbacks.