Buying a home is not easy. The purchase of a home will likely be the largest financial commitment that you ever make. As such, you should not rush into this commitment. If you use wisdom and judgment in trying to decide what you want, what you can afford, and where you want to live, and if you will listen to and obey the promptings of the Holy Ghost, you will make correct decisions regarding your housing needs.

There are four major options for the home decision: renting, buying, building, and renovating. Each of these options has specific advantages and disadvantages.

There is a process of buying a home, which, if followed, will help you to make wise decisions in buying a home. The process is:

1. Understand Your Limits.
2. Find Your Home and Don't Rush to Purchase.
3. Negotiate Your Loan.
4. Enjoy Home Ownership.

It is critical that you understand all fees and expenses before you close on a house—there are many expenses. One of the largest expenses is your mortgage. With so many different options available for a mortgage, it is critical that you understand how to calculate a comparable rate on loans with different points and fee structures. Understanding the different expenses involved in buying a house and how to compare different loans with different points and fees will save you a lot of money overall. Critical to this ability to compare is an understanding of points, the effective interest rates, calculating effective interest rates, and prepayments.

There is much to learn and remember when buying a home. Keep your goal of buying a home in the perspective of your overall goals and objectives. Buying a home is an important goal—but it is not the only one. Home ownership is an important goal for many people. In spite of the challenges associated with buying a home, having a home may bring many blessings and opportunities. If you will follow the advice of Church leaders, you will find that buying and owning a home can be an extremely challenging but rewarding activity.

Now that you have completed this section, ask yourself the following questions:

1. Do you understand how a home fits into your financial plan and our leaders’ council on home buying?
2. Do you understand your options in the housing decision?
3. Can you navigate the process of buying a house?
4. Can you compare the different types of loans with different fees and points?

If you can answer yes to each of these questions, you are ready to move on to the next section!