Top 5 Things to Consider Before Buying a Home

How to Protect Your Future While Finding the Right Place Today

Buying a home is one of the biggest financial decisions most people will ever make. It’s exciting—but also easy to get swept up in emotion and overlook key financial factors. As fiduciary financial planners, we’ve seen how the right (or wrong) home purchase can shape a person’s entire financial future.

Whether you’re a first-time buyer or relocating for the tenth time, here are the top five things you should take into consideration before buying a house—to ensure your decision fits your life and your long-term plan.

1. Know How Much House You Can Comfortably Afford

It’s tempting to stretch for that dream kitchen or neighborhood, especially if the bank pre-approves you for more than you expected. But just because you can afford it on paper doesn’t mean it’s wise in real life.

A good rule of thumb: your total housing costs (mortgage, taxes, insurance, maintenance, and HOA dues) should ideally stay below 28-30% of your gross income. This allows room for saving, investing, travel, and life’s inevitable surprises.

Be cautious about focusing only on monthly payments. Many buyers overlook long-term maintenance or under-budget for rising property taxes. A financial plan can help clarify your affordability range—and keep your home a blessing, not a burden.

Use this calculator from NerdWallet to estimate a realistic home budget.

2. Plan for the Total Cost of Ownership

The sticker price is just the beginning. Homeownership comes with hidden costs—some predictable, some not. Think:

• Closing costs (typically 2–5% of the purchase price)
• Property taxes and homeowners’ insurance
• Annual maintenance (generally 1–3% of home value)
• Utilities, landscaping, snow removal
• Furniture and renovations

A fixer-upper might come with a lower price tag but be honest about the time and money you’re willing to invest. Do you have the emergency fund to handle a new roof or HVAC system in year one?

Long-term, these costs are manageable with planning. But failing to anticipate them can derail other goals—like saving for retirement or college.

3. Consider Your Time Horizon

Ask yourself: How long do I plan to stay in this house?
If the answer is less than five years, buying might not make financial sense—especially when you factor in closing costs, moving expenses, and the unpredictability of the housing market.

The longer you stay, the more likely you are to benefit from home appreciation and mortgage principal reduction. If you’re unsure about your timeline due to career, family, or lifestyle changes, renting may offer more flexibility (and less financial risk).

Need help weighing the rent vs. buy decision?
This Investopedia article breaks it down well.

4. Don’t Skip the Pre-Purchase Financial Checkup

A house shouldn’t exist in a vacuum—it’s one piece of your larger financial picture. That’s why it’s smart to pause and review how a purchase will impact:

• Emergency savings
• Retirement contributions
• Debt levels
• Insurance needs
• Overall cash flow

Will this home limit your ability to fund other goals? Do you need to adjust your investment strategy to account for new expenses or risks? A financial planner on our team can help stress-test your plan to see what’s sustainable.

It’s not just about getting approved by a lender—it’s about protecting your future self.

5. Look Beyond the House Itself

A beautiful home in a bad location rarely makes for a good investment—or a happy homeowner. Make sure to research:

• School district ratings
• Commute times and traffic patterns
• Local property taxes and municipal budgets
• Long-term neighborhood development plans
• Crime statistics and environmental risks

Remember: you’re not just buying square footage; you’re buying a lifestyle. And down the road, that location will impact resale value just as much (if not more) than the layout or finishes.

Final Thoughts

Buying a house is more than a transaction—it’s a commitment to a lifestyle and a financial strategy. It should align with your values, your priorities, and your long-term vision.

At Abri, we help clients feel safe—and that starts with making decisions today that won’t compromise tomorrow. If you’re thinking about buying a home and want to make sure it fits into your overall financial plan, let’s talk. Because peace of mind isn’t just about where you live—it’s about how you live.

Need help evaluating your next big financial decision?
Reach out to schedule a free intro call and see how Abri can help guide your journey.