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Are you buying home our house?  As you read and study about buying real estate, you will often find the words house and home used interchangeably. There is a huge difference between a house and a home.

A house can be a place to eat, sleep, park your car, and put all your stuff (including other family members). It is a material possession and an investment. A home is where you feel comfortable, warm, safe, and protected. A home is where you live.

A house is something you buy logically. A home is an emotional purchase. When buying real estate you have to balance your emotional wants and your logical needs because there will almost certainly be a time when the two conflict.

Example

For example, you may want a house with a view, but the payment is higher than you feel comfortable with on a thirty-year fixed rate mortgage. What do you do?
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Purchase the house anyway and budget more carefully for the next few years? Buy the same house without the view and get it cheaper? Make a larger down payment by borrowing from your 401K or family members, so you get a lower payment? Get an adjustable rate mortgage with a smaller payment instead of a fixed rate loan? Or buy a smaller house and still get the view?

When viewing the house, most people look at it emotionally and envision it as a safe, happy, comfortable home. Later, when making the offer or filling out a mortgage application, your logic may begin to kick in, instead.

Balancing Act



The trick in buying real estate is to view all decisions with both a logical perspective and an emotional perspective. If a situation presents itself that requires a trade-off, decide on whether there is a huge conflict or a small one. Logic should win the big conflicts, but emotion should always be a factor, even winning the small ones.

You will find yourself owning a warm, happy, safe home and an investment for the future at a price you are willing to pay. __________________________________________________________ Ajay Pats is a professional manager.He runs inspirational ezine Discover secrets of happy and prosperous life accessible at http://www.topica.com/lists/venturemall and community for home business entrepreneurs Venturecon/Home business accessible at http://groups.msn.com/venturecon .He also manages real estate broking site Real estate broker accessible at http://realestatebroker.nexuswebs.net/realestatebroker/index.html . __________________________________________________________

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