The cost of buying a home is on the rise. In the last 10 years alone, prices have increased in almost every major U.S. city, according to home investment company Unison’s 2018 Home Affordability Report.To get more homes news, you can visit shine news official website.

Becoming a homeowners is a huge financial undertaking, requiring far more than a simple down payment. So how do you determine exactly how much you need to save to be able to afford to buy a house?

First, start by figuring out where and how you want to live. The more you can flesh your ideal area, the better. Eric Roberge, CFP and founder of Beyond Your Hammock, recommends asking yourself the following four questions:Next, figure out how much home you can afford, based on your current income, expenses and future goals. Keep in mind that just because you can afford a bigger space doesn’t mean you necessarily need one, and more space can mean higher real estate taxes.

Roberge recommends researching the average price of a home in your dream neighborhood and taking 20 percent of that number: that equals your hypothetical down payment. How many months would it take you to save up that amount?

«Although you do not have to put 20 percent down on a home, this will give you a framework to help you decide if it’s possible to own a home in that neighborhood,» Roberge says.

To truly afford a house, you need more than just a down payment. Ultimately, you’ll want to be able to comfortably cover six factors: the down payment, closing costs, moving expenses, repairs and maintenance, the first few months’ mortgage payments and your emergency fund.

The down payment can range from 3.5 percent to 20 percent of the total cost of the home, depending on your credit score, mortgage interest rate and current financial situation. Cathy Derus, CPA and founder of Brightwater Financial, recommends putting down closer to 20 percent because it gives you a bigger stake in the property right away.

«You’re going to be lowering your monthly payment in the future, and you also have a buffer,» she tells CNBC Make It. «If housing prices decrease and you need to sell your home, you’re not going to be as much underwater if you have more of that equity in the home up front.»
Don’t overlook the money it will take to make your new house a home. In addition to physically getting your stuff there, immediate expenses crop up. Do you need new furniture to fill a larger space? Do you want to decorate as soon as you move in?

«Unless your home is brand new, there could be things that you’ll need to upgrade or add,» Roberge says. «It’s human nature to want to make the home feel, well ‘homey’ and comfortable, so people often end up buying furniture after they move in.

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