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.
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:
- Do I want to live in an urban or rural neighborhood?
- Would I be okay with neighbors in my building or do I want a standalone house?
- Do I care how long my commute is?
- Do I want to drive, ride the train or walk to my normal destinations?
"These questions will help you narrow down the areas that fit with your vision," he tells CNBC Make It.