Do you think you are ready o buy your first home? Making the move from renting to owning your first home is an exciting time. However, it is likely the most expensive purchase you will ever make, thus this move must be planned and researched extensively. Many people think they have enough savings to purchase a home, only to find themselves scraping by each month because they did not account for the additional expenses of owning a home. By following the helpful tips below, you can start the planning process for making your first home purchase.
Avoid Draining Your Bank Account
Just because you have $10,000 in your bank account does not mean you can afford a $10,000 down payment. There are ALWAYS hidden costs in moving, often things that you do not even think about until you begin to move in. When you rented, you most likely did not have to worry about a lawn, or many different utilities. You always need to have cash ready on hand for these new expenses that your old landlord would have covered.
Get Ahold of Your Financial Position
Having too much debt is never a good sign that you are ready to buy a home, whether it is a result of credit cards, student loans, etc. Adding a monthly payment on a mortgage is a huge expense to add into your budget, and if you are already struggling with other forms of debt, it may be a sign that you are not ready to buy.
Are You Ready to Settle Down in the Area?
One of the worst things that can happen after you purchase your first home is that you realize you are not suited for the area; maybe it is louder than expected, maybe you realized you cannot take your job anymore and you need to get out. Whatever the reason is, these are all things to take into account before purchasing a home. Whether the home is beautiful or not is irrelevant if it means you do not like where you live. According to The Balance, You should stay in your first home at least three to five years before considering another move. Are you prepared to commit for that time?
Can you Handle Homeowner Responsibilities?
While you were renting, a leaky pipe or a broken toilet was usually resolved by your landlord at no additional cost. However, the second that you become a homeowner, those responsibilities become your own. Do you know how to fix a pipe? If not, can you afford to pay someone else to do it? Can you afford a lawn mower or landscaping services? If not, you could quickly see your property value depreciate as your lawn gets out of hand. Additional expenses like these are just part of being a homeowner, and just another thing to plan for.
If while reading these tips, you realized you are in good shape, then it may be time to consider making the move to being a homeowner. Owning a house is one of the most exciting things that you can do; it is the ultimate dream for everyone. If, after reading this article you do not feel that you are ready, then take steps towards making it happen. By staying organized and by keeping track of your finances, owning a home is not a dream, but rather a reality. At Brass, we can help you every step of the way. Make sure to contact us with any questions you may have regarding purchasing or financing a home.