There are many factors to consider in your decision to buy a new home, and it's important that you identify why you're in the market for a new home. Common reasons include moving closer to work, better schools, or to accommodate a growing family

Whatever your motivations are, it is important to make certain that you're making the right decision. The time must be right in terms of your financial and professional situation and the personal aspects of your life. If your career could possibly call for you to move within the next few years, then it might be advantageous to wait to make a home purchase. Also, if your family is growing and you plan for it to continue to grow, it would be wise to wait to make a purchase or to purchase based on your future needs not your present needs.

Your financial situation will be one of the biggest factors in your decision to buy a new home. You must consider the cost of a down payment, closing cost and the cost of relocating. Even after you satisfy all the transaction related fees, you still must contend with the mortgage payments. As a general rule in order for a mortgage to be considered affordable it must not take up more than one third of your net income.