Home Buying 101
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Most people don’t just wake up one morning and decide that they’re going to buy a home; unless perhaps they are exceptionally wealthy. For most of us it’s a gradual decision brought on by many factors: rising rent prices, the inability to make changes without a landlord’s approval, a growing family, etc. The list goes on, but no matter what prompts you to make the move to owning your own home, it’s a huge decision; and it can be intimidating.
It’s perfectly normal to be nervous and have some reservations about buying a home, especially if you are a first time buyer. Not only is this probably the largest single investment that you’ll ever make, but it will most likely involve an extremely large amount of your hard-earned money. Fortunately there are some tips and tricks that help you decide whether or not you’re ready to be a home owner.
Consider Whether Owning a Home is Right for You
Owning a home isn’t for everyone. Some people are just not cut out to be home owners and the time to decide is well before you enter into a contract. If you find yourself moving or traveling frequently, being tied down to a house can cause considerable problems unless you have someone to care for it while you’re away.
Are you able to do at least some household repairs for yourself? If the answer is no, it doesn’t necessarily mean that you shouldn’t buy, but you’ll need to add maintenance and repair costs into your budget. When you rent, the landlord takes care of these things, but as a homeowner you’ll be responsible for them yourself. Trying to do your own repairs if you are inexperienced is a great way to test your homeowner’s insurance, but it isn’t advisable.
Take a Good Look at your Finances
Look at not only your savings, but your credit card debt, any other loans that you have, and your credit score. The more you can afford as a down payment, the less your mortgage payment will be. Look also at your ability to handle money wisely. This is never an easy thing to do, but it pays to be honest with yourself. Do you make sure that your bills are paid on time even if it means doing without a few luxuries or have you been known to ask for an extension on your rent payment so you can afford to go to that expensive concert?
Talk with a Real Estate Agent
While realtors are not meant to be financial advisors, they are experienced in helping people make decisions about home buying. Contrary to popular belief, most realtors aren’t going to sell you something that you can’t afford. Your realtor can help you look over your finances and find a price range that is suitable for your income as well as giving advice about things like financing and what to expect. They can also help you to decide whether or not you can manage a mortgage payment along with your other obligations.
There is certainly more factors involved with the decision to buy a home, but these are some of the first things that you should consider. These things aren’t hard and fast rules to determine whether you should buy a home and each situation is unique. Deciding to buy a home is somewhat like deciding to have a child. If everyone waited until the perfect moment to start a family, the world would be a far less populous place. Likewise, if you wait until the perfect moment to buy a home, it may never happen. It is always wise however to be sure that at least some of the conditions are right and perhaps make a few adjustments to your way of thinking. In the end the sacrifices that you make are more than worth it in the long run.
