Many people think that they “know” when it is time for them to get a house. For instance, in my own situation, I would love nothing more than to own a house. I have quickly outgrown my apartment, and my boyfriend and I are constantly tripping over each other. However, like so many other couples, there are many things to consider first, and you have to be smart about it.

There is a correlation between buying a house and buying a car for the first time that many people make the same unfortunate mistake with. For instance, you may go to a dealership and see a beautiful vehicle that is fully loaded with all of the special perks and subtleties that you may have always wanted in a vehicle. However, when you look at the price tag, you may realize that it is totally out of your budget. In many cases, the salesperson will lead you to believe that you can still afford the car when in fact you really can't. You fail to realize that you couldn't afford the car until it is too late. The same sometimes goes with buying a house, which is part of the reason so many people are in trouble with the housing market today. You see a home that has all of the amenities in it that you want, and despite the fact that you know you really can't afford it, you are still approved for the loan, and you decide to risk it anyway.

Only start thinking about buying a house when you know that you have enough money saved up to do so. And this money doesn't just include what it would cost to cover the down payment. You have to consider closing costs, lawyer and realtor fees, property taxes, home repairs, etc. There are many things that can go wrong with a house, and unlike living in an apartment- you won't be able to call the front office to have them come and fix it.

If you and a partner are going in on buying a house together, you need to sit down and talk with them first about your relationship-especially if you are just roommates or are only dating. Things sometimes happen that we don't plan such as people getting married, couples breaking up- and all of these things can affect a couple of people who have decided to purchase a piece of property together. As awkward as it can sometimes be, you need to be totally honest with each other about how much money you earn as well as how much debt you owe. These things will factor in heavily when you go to apply for a loan from the bank. Additionally, many people don't realize it, but if you have just started working, you will probably have a harder time getting a loan because banks want to see that you have a work history that is longer than working at a particular job for a few months. If you want to own a house down the road, you need to make sure that you are on top of your bills. Don't skip payments; create a system for paying your bills on time- get organized! Missing payments will hurt your credit score as will owing a large amount of debt or not owning a credit card at all.