Deciding on homeownership should never be a whim or last-minute decision. Owning a home comes with responsibilities and financial commitments that new homeowners may be inexperienced with. Before you start transitioning from renting a home to buying a home, ask yourself these five questions.
#1: Does your budget have room for buying a home?
Understanding and calculating your finances can feel stressful at best, but it’s a necessary step before making a major purchase—and buying a home may be one of the biggest purchases of your life. So, can you afford it?
Buying a home isn’t just the down payment (which, by the way, should be around 20 percent of the home’s purchasing price), monthly payments, or the mortgage; it’s the maintenance costs, home insurance, closing costs, utilities, and emergency funds. These prices aren’t included in the initial price tag of that home you have your eye on—you’ll need room in your budget to handle the price of long-term home ownership.
#2: How’s your job going?
Speaking of having room in your budget, do you have a job you’re comfortable with? Are you satisfied with its pay? Is it stable? One thing to keep in mind before transitioning from renting a home to buying a home is that homeownership tends to restrict job opportunities to the area in which you’re living. Renting is the most flexible option if you’re not sure you’re planning on sticking with your current job—or if you’re not sure you can find a job in the area you’re looking.
#3: Where do you want to live?
Do you have a neighborhood in mind? A town or city? Regardless of what you have in mind, do you research before settling on a home. Once you buy a house, it won’t be easy to back out a few months down to road if you realize your chosen location doesn’t meet your expectations.
#4: Are you willing to maintain a home?
Remember those long-term costs of ownership mentioned above? Maintenance comes with a price tag, but you also must be willing to handle these tasks yourself. When you’re renting, you often have the option to contact your landlord about maintenance problems, but when you own a home, the responsibility falls squarely on you. If you think you can be your own repairperson or have the budget to hire a professional, then maintenance likely won’t be a problem for you.
#5: Are you prepared for a potentially lengthy homebuying process?
Unfortunately, buying a home isn’t as simple as finding a home online and clicking a “buy” button. You’ll need to do research, house tours, communicate with a real estate agent, and weigh your options. If you have a roommate or spouse you’re buying the home with, then you’ll probably need to consult with him or her, too.
If you’ve answered positively to all of these questions, or if you’re prepared to make adjustments in your expectations or lifestyle, then you’re ready to start transitioning from renting a home to buying a home!
If you’re looking to buy a home in the Auburn, Opelika, or Lake Martin area, contact Ryan Roberts at 334-750-9872 or email [email protected]. For more advice on homebuying and homeownership, continue following the Ryan Roberts Realtor blog!