Congratulations! You’re ready to graduate from renting to owning your very own home. However, have you carefully thought about the lifestyle and financial changes that come with becoming a homeowner? Without careful preparation and research, taking the jump from renting to owning a house can come at quite a shock for some people. To help you make this big decision, these are a few things I think you need to evaluate beforehand and what you can expect when buying a house.
Is it the right time?
It’s important to think long term when buying a house. Do you plan on living in the area for a while or will you be relocating in the near future? Will you or your partner be moving at all due to job requirements or family commitments? Buying a home is a lot less flexible than renting as you can’t just pack up and leave whenever you want like you can with renting. Think long term where you want to be. Have you also evaluated the extra workload that comes with owning your own house? As a homeowner, you will now be in charge of the upkeep of your property, not your landlord. Are you ready to take on the stress and maintenance of your own home?
Are you financially ready to buy a house?
When you are purchasing a house, you will need to submit a down payment, so you need to pay a lot more money upfront than you would with renting month-by-month. There are also additional closing costs that come with purchasing a house. Closing costs involve hiring a lawyer and hiring a lawyer means you must pay them along with things like land transfer tax, deposits, home inspection fees, etc.
Also, keep in mind that the amount you borrow from a lender for your mortgage is limited. Depending on your current income level, your debt load, and your credit score, lenders will only approve you for a certain amount of money, and you’ll be required to have a percentage of the overall amount of your mortgage as a deposit or down payment right out of the gate without the help of a bank or other lender.
There is also a lot more to do than come up with the money for your new home. It requires months of paperwork, planning, negotiations, and inspections. You need to be 100% committed to the work it takes to find a home and make it your own.
Get your financial situation in order
Talking about financials, this is a quick checklist of what you need to do when preparing to buy a home:
1. First, evaluate all costs and get your money together.
2. Budget your total expenses and plan accordingly.
3. Seek the sound financial advice and get an outside opinion to help you evaluate if you have taken everything into consideration and are fully ready to take the next step.
4. Get pre-approved for a loan to evaluate what price range you’re looking at when shopping for a house by going to the best mortgage broker you know (shameless self-plug I know).
5. Do extensive research on the properties and locations you are looking at. Working with an experienced real estate agent is recommended to help you find the perfect home without any hidden consequences and to find you the best deal.
Are you ready to take the next step and become a first-time home buyer? As a professional mortgage broker and financial advisor, I can help you prepare and plan to buy your dream house. Not only by helping you evaluate your finances to see if you’re ready to make the leap from renting to buying your very own home, but also in securing the mortgage you need. When purchasing a home, it’s important to evaluate your finances carefully and precisely. Work with me, Darren Robinson and see why working with an experienced and hard-working mortgage broker is better than going to the same old bank. I’ve even got options the bank doesn’t! Call today at 705-315-0516 and let’s set up a meeting to get started!