Long Term

• When you are considering buying a house, you need to think about how long you plan on staying in the area. If you do not think that you will be in the same place for many years, there is not any reason to buy a house. You cannot realize enough appreciation in the house to come out ahead on the deal if you do not stay put for several years. You may need to be in the house for three to five years before you can make back the real estate commissions from buying.
  
  

Down Payment

• If you are thinking about buying a house, you need to save up enough money for a down payment first. If you do not have any money for a down payment, it can be very difficult to get approved for a loan. Even if you are approved for a loan, you will have to pay private mortgage insurance if you do not have 20 percent for a down payment. Coming up with a larger down payment helps you accumulate equity in your house, which can work to your advantage if property values drop.
  
  

Inspection

• Before buying a house, you need to hire an inspector. Working with a qualified building inspector could potentially save you thousands of dollars in the future. An inspector will be able to look at a property and tell you if there is anything wrong with it. If the property has issues, you may want to avoid it completely. If the property only has minor problems, you could potentially ask the seller to fix them or lower your offer accordingly.
  
  

Pre-Approval

• Before you get out into the market and start making offers on houses, it may be wise to get pre-approved for a loan. The pre-approval process involves finding out exactly how much you can borrow based on your credit file and income. This will help you avoid making an offer on a house that you cannot afford. It will also give you credibility with sellers when you make an offer on a house. You may be able to act on purchasing a house quicker with a pre-approval in hand.