You may have strong emotional reasons for buying a home. Owning can help you feel grounded, and part of a community. It can also provide a sense of accomplishment and a place to build family traditions. Often, you have more space than you would in a rental unit that costs the same amount of money. But owning a home is also a smart financial decision. It can save you money through tax breaks. And your home is an investment whose value may increase over time.

In addition, buying a home usually makes it easier to buy another in the future -- often a nicer, more expensive one. For one thing, as long as you keep on top of your mortgage payments, you'll be in a position to develop a strong credit history. That may help you qualify for other loans in the future, including a larger mortgage to buy a bigger home. And if you sell your current home at a profit, you'll have more money for a down payment on the next one.