4. Will this house fit my long-term goals?
While you have to make a purchasing decision based on your current financial situation, you should imagine your future personal and work life.
Friedman suggests buyers ask themselves, "Are we going to grow our family?" and "How many bedrooms do we need?"
If you think an elderly parent may move in or you'll need a home office, include that in your decision. Don't forget about schools. Sometimes, paying more for a house can be cheaper in the long run. A pricier home in a better school district can be cheaper than a lower-priced home plus private school for 13 years.
"This home will let us go for public school and not pay $50,000 for private school," may be the thinking, Friedman says.