It is part of the American dream to own your home. It takes more than dreaming of owning a home. Here are some questions to ask before you take the plunge.

Is It A Good idea To Buy?

Renting or buying must make financial sense. To help you decide, use a buy vs. rent calculator to find out how long it will take for the cost to buy to equal the cost of renting. This is called the breakeven period, and it varies depending on where you live.

Renting is a good option if you intend to remain in your home beyond your breakeven. Also, renting is a good option if you don't plan to move as soon as possible.

Are You Financially Prepared?

A down payment must be raised and a monthly mortgage paid. This can last anywhere from 5 to 30 years, depending on what home loan options are available. Of course, there are additional costs, but let's concentrate on the big bucks.

• Down Payment: 

  This lump sum that you pay upfront to fund equity in the property. It also proves that you have the financial means to repay lenders. There are many options for down payments. Some lenders rejected down payments in the days leading up to the housing crash. We can see why. 20% is the preferred rate and will often get you the best rates. However, some loans allow down payment as low as 3%. Sometimes, assistance can be offered by friends and parents. You have the option to give a gift instead of a loan. This is because lenders will add your monthly obligations to that debt and possible mortgage payments to calculate your debt-to-income ratio. This ratio can generally not exceed 43 percent to be eligible for a home loan.

• Monthly Mortgage Payment: 

  This is the amount you will pay each month. A mortgage usually includes the principal and interest of the loan (both amortized over the life of the loan), plus homeowners insurance and taxes (pro-rated). In the past, credit was limited, and mortgages, at any rate, were reserved for those with good credit. Although things have improved, lenders still require proof that you are responsible, earnest, and credit-worthy.

Are You Emotionally Prepared?

It is a big commitment to owning a home. Before you decide about buying a house, think about whether you are prepared to make many choices, such as choosing an agent or picking paint colors. Do you feel confident enough to choose a place where you will want to live for a long time? Are you willing to put in the effort and time necessary to maintain a home? Doing chores such as shoveling snow, pulling weeds, or cleaning out gutters will take up most of your weekends. It can be rewarding to take care of your largest investment, but only if it's something you are willing to do.

Are You A Skilled?

Regular maintenance and repairs will be required for your home. There's no landlord to call. To avoid going broke, hiring a professional to fix every itch or sound, you'll need basic handyperson skills.

These are the basics every homeowner needs to know:

• Change the flapper on the toilet

• Turn off main water valves and outdoor faucets

• Change a furnace filter

• Clear gutters

• Change smoke detector batteries

• Find and flip breaker switches

• Find the studs needed to hang shelves

• Painting a Room