Just about all of us wonder about the day we'll pick up the keys to our own home. Whether you like waterfront contemporaries or picket-fenced ramblers, the idea of owning a home is attractive. But many people don't realize that home ownership doesn't have to be so far off in the future. This section will help you decide if you're ready to buy a home, and will also discuss some of the benefits of owning your own home.

Why should you consider buying? First off, buying a house puts your money to work for you. Property values are on the rise at a rate faster than most interest-bearing savings accounts, making a home a great investment. Also, while rents continue heading skyward (especially in the greater Seattle area), your mortgage payment will be consistent. That means your housing expenses will be stable, while your income will naturally increase over time. In short, you can stabilize your monthly expenses, and put the money you pay in rent back into your own pocket.

In addition, interest paid on your mortgage loan is tax deductible, which can mean huge savings on your taxes. This is especially true in the early stages of home ownership, when you're paying the most interest. And interest rates themselves have been hovering around 7% for a fixed-rate 30-year loan -- making your home loan your least expensive loan.

Another big bonus to home ownership is that, unlike rent (which disappears each month), your mortgage payment goes toward your equity in the home. Your home equity works like an emergency line of credit -- you can tap into it if you need to make home improvements, pay off other, higher interest bills, or in case of unexpected expenses (like medical costs). If you decide you want to move after a few years, you haven't lost anything. When your home sells, you walk away with the equity you've invested over your time in the home. That equity can be applied toward your next home as a down payment. Contrast that with the situation when you move out of an apartment--in many cases, you're lucky to even get your deposits back!

Speaking of down payments, with new financing programs, first-time-buyers can buy a home with as little as 3% down. In some areas, through special programs, it's possible to secure a mortgage with no money down. So if saving toward your down payment is what's holding you up, it doesn't have to. And, because Washington is a community property state, virtually any two people -- be they married, or just good friends -- can purchase a home together. If you've found a good roommate, it might be a good idea to consider going in on a home together. The home will belong to both parties equally.

Still not convinced? Let's try our buying power calculator to see how much home you can currently afford.

Now that you know what your buying power is, the fun part begins. The following section discusses what to look for in a home, and provides handy house-hunting resources.

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