Before you purchase a home, consider the following pros and cons:

Owning vs. Renting
Owning a home is still considered the "American Dream." Although it is something most people consider from time to time, others choose to remain renters. Many individuals enjoy the worry-free aspects of renting and simply don't want the responsibilities that go along with owning a home. Others don't pursue home ownership because they're not sure if they can afford it.

Times have changed. It is now possible to purchase a home with as little as 3 percent and sometimes zero down.

Advantages of Owning a Home
When you carefully choose a house you can afford, the outcome can be significant: By making your mortgage payments, you are building equity in a place of your own. Equity is the portion of the property that you actually own. Equity increases by paying your monthly payments, and your home may also appreciate in value over time. As a homeowner, you can deduct the amount of mortgage interest and real estate taxes you pay each year on your federal and state income tax returns, if you itemize deductions. A first home often leads to a better second home. Owning and properly maintaining the property also offers a sense of accomplishment. Long-term home ownership can provide beneficial retirement security through the growth of equity.

Disadvantages of Owning a Home
Even if you work hard at maintaining your home, property values can drop, depending on the neighborhood in which you live. This is why it's important to choose a house and neighborhood that have strengthening value in the real estate market. Mortgage payments are generally higher than rent, and include the added costs of home repairs and maintenance. As an owner, you must pay for any unexpected costs such as a new roof or heating system. This is why a family budget, and a savings strategy, is important. When you own a home and fail to keep up with your mortgage payments, the mortgage lender could call the loan, which means payment in full or foreclose on the mortgage. This could result in the loss of your home as well as the equity you've built. A renter, on the other hand, can downsize to a cheaper apartment to cut expenses. After you purchase a home, you may not have as much flexibility in choosing a new location to live or work.