5 tough choices you need to make when buying a home

Here are five big decisions you should be prepared to make when entering the housing market.

1. Location or square footage?
If having a home in a prime location is your priority, you may need to settle for a smaller amount of space. If square footage is more important, be prepared for a longer commute or to have fewer amenities nearby.

2. Fixer-upper or move-in ready?
Buying a property that needs a bit of work could save you money. However, if you don’t want to invest your time and energy into making repairs, choose a home that’s in better shape.

3. Big loan or big down payment?
Paying the full 20 percent down payment will save you from having to dole out funds for mortgage insurance, but it could be a big financial hit. If it leaves you with no real savings to speak of, a smaller down payment may be a better idea.

4. Condo or detached home?
If you’d rather avoid routine maintenance tasks and don’t mind having neighbors close by, a condominium might be your best bet. However, you’ll need to run any renovation projects by the board. A house is more private, but you’ll have to manage the upkeep yourself.

5. Urban or suburban?
Depending on your lifestyle and needs, proximity to mass transit and to various activities may be worth having less space and a slightly higher cost of living. If you don’t mind commuting and prefer the tranquility of a residential area, then the suburbs might work out better for you.

In the end, the most important thing is to articulate your needs as clearly as possible, which is something your real estate agent can help you with.