This is a difficult question, I know. And what I also know is that few people expected it. Let us start by saying that house can be a place to eat, sleep, park your car, and put all your stuff, that is including your other family members too. The house is a material possession and an investment. A home is where you feel comfortable, warm, safe, and protected. A home is where you live.
During the time you spend reading and studying about buying real estate, you will most certainly find the words "house" and "home" as two separate things. And there is indeed a big difference between a house and a home.
A home is an emotional purchase, while a house is something you buy logically. When buying real estate there will almost certainly be a time when your emotional wants and your logical needs will conflict. The best strategy is to balance them carefully.
Let us take the following situation as an example. A person wants a house with a view, but the payment is higher than he or she feels comfortable with on a thirty-year fixed rate mortgage. What is there to be done in such a situation? He could buy the house anyway and budget more carefully for the next few years or buy the same house without the view and get it cheaper. If he is not satisfied with any of the two options, he may also buy a smaller house and still get the view! Another good idea for him would be to try getting a lower payment by making a larger down payment with the aid of borrowed money some family members. Another question would be whether to get an adjustable rate mortgage with a smaller payment instead of a fixed rate loan.
The fact is that most people look at a house in an emotional manner and see it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in, instead. A strange feeling of remorse will start coming up, but it is better to make it go away at once.
So, if you are wise enough to view all decisions with both a logical perspective and an emotional perspective, buying real estate will never be a losing game to you.
