The decision to buy a home is a big deal. It’s a major financial responsibility. When you make the move from renting to owning, you’ll have a place to lay your hat and call your home – and that’s exciting.
Deciding to become a homeowner isn’t a decision that should be taken lightly. There’s a process involved in buying a home. There’s no doubt the transition will change your lifestyle.
Be Open to Change
Homeowners need to be open to change, otherwise the process will be very difficult. Buying a home is a good investment and it’s a good change, but it’s still a change nevertheless. Things like your commute, your monthly expenses and your weekend routine are likely to shift.
Think About the Expenses
Although your surroundings and daily routines will most likely change when you decide to no longer rent, not everything in your life has to be completely new. After the move, the process of owning a home is very similar to renting: utilities are still due each month and so is your mortgage payment (formerly your rent).
Your expenses will definitely change. There are a few additional expenses that come with owning a home (such as property maintenance costs, property taxes and mortgage insurance). “Insurance is required when you have a mortgage. Lenders require that your insurance cover the cost of rebuilding the home if it is ruined by fire or other disaster. Insurance will typically cost $700 to $1,200 per year for a single family home.” according to Zillow.com.
It’s a smart idea to set a homeowner budget that includes all of your after-move-in yearly and monthly expenses. Then, you can compare it with your current spending and see in black and white how your living expenses will change after you buy a home.
Are You Ready to Buy?
Investopedia says there are a number of ways you can know if you’re ready to buy a home. If owning will save you money, your rent is too expensive, you have money saved up for the down payment and all the other costs that come with transitioning from renter to owner, you may be ready to own.
However, the best sign that you’re ready to buy a home is being ready to make the commitment. “First and foremost, if you’re not ready to commit to owning a home, you should not buy a house (because) home ownership comes with a plethora of responsibilities.”
If you want to buy a home, contact a professional. They’ll walk you through the homebuyer process to make the transition from renter to owner as easy as possible.