While a big 8 bedroom, 6 bathroom home sounds awesome, and very appealing, if you only have two children, it means you are paying a lot of money for empty rooms. You can save considerable money in the purchase of your home by buying the home that fits you and your family. If you currently have two children, and plan to have three, it can be smart to buy a home you can grow into a little, but buying one that is much larger than you need is a waste of money. Even if you can qualify for more, does not mean you need more. Most experts say to look for a home that has the same number of bedrooms as you have family members. This does not mean everyone has to have their own room. Home prices are greatly effected by the number of bedrooms and bathrooms they have, so if you do not get extras you will save a lot upfront on the purchase of your home.

Square footage matters too. The more your home has, the more it will cost. In many cases a smaller square footage home might actually be better designed, easier to live in and costs you less saving you money. A home with a well laid out floor plan with less square footage beats a home with tons of wasted space square footage any day. So, look more at the functionality of the space then just the numbers.

Typically a smaller house costs less, but a bigger house may actually be a better value, so figure out the per square foot price, and compare it to the average for your area. Choose a home that is below the average in price, and that has the amount of space you need, not a lot more. This will save you on the purchase price.

Second consider the costs outside the purchase price.

Taxes and insurance are a big part of the cost of housing. Bigger houses generally carry higher property taxes and bigger insurance bills. So, if you qualify for a big home, but choose to purchase one that is slightly smaller, you could save yourself hundreds of dollars a year in insurance alone, not to mention mortgage payment and interest charges.

Third, consider the other costs of a home.

Homes require heating, cooling, repairs, yard maintenance, furnishing, decorating, etc. If you buy a bigger space than you need, you are paying to heat, cool, furnish, etc. a bigger space. So, buy what you need, and do not be too extravagant, and you will find that the savings are huge.

If you have two children, and a nice income, it does not mean you need to max out what you qualify for. You will be much happier in a 3 bedroom 2 bath house with a mortgage of $800 and additional costs of $200 then in a 8 bedroom 6 bath house with a mortgage of $3400 and additional cost of $1200. Even if you can afford it. Why? Because you will have money to play, you won't have nearly as much stress for making your bills, etc.