Buying a home is the largest purchase most people will ever make! Homeownership has great benefits but also comes with certain responsibilities. Let’s check to see if you are ready for homeownership.
Look at your current situation and determine if:
You have a steady, reliable source of income and/or steady employment history for the past two years.
You have a good credit history and credit score.
Your total debt is manageable to afford the costs associated with homeownership.
In addition to the requested $500 commitment to be used towards earnest money, home inspection and prepays, you must also have $500 saved for costs associated with moving to your own home (i.e. utilities, deposits, moving expenses, etc).
Next, think about your future plans and things that might affect your ability to manage the costs of homeownership.
Consider what changes you may need to make to your current lifestyle.
Consider the costs of a growing family.
Consider whether your family plans might include a wedding, college education, or caring for an elderly person.
Most importantly, remember that homeownership come with budgeting for items such as repairs. Maintenance, taxes, landscaping, etc.
Finally, look at the pros and cons for homeownership and make the best decision for you and your family.
You will have a place that is your own!
You may pay less than you would rent.
Your monthly payment doesn’t go up if you choose a fixed rate mortgage.
You will build equity—the single greatest source of financial security and independence for the majority of people who have taken this step!
Risks of homeownership
It is more difficult to downsize to a smaller home.
You may need to sell due to life circumstances.
You become your own landlord and will have to pay for the repairs/replacements.
Property values may depreciate due to condition of your home and homes in the area
Monthly housing expenses can increase through property taxes and homeowner’s insurance.
Be honest with yourself. Look at your financial picture realistically, once you fully understand your situation, your future plans, and how homeownership fills the big picture, make the best decision for you and your family.
Blog submitted by: Ron Cooks of The Real Estate Market Place – Servicing the Greater Fort Hood area which includes: Killeen, Harker Heights, Temple, Belton, Copperas Cove and Nolanville. Feel free to call Ron at (254) 702-0064 if you have any questions regarding Central Texas Real Estate.
For Real Estate Listings in Central Texas visit my website at: www.ron.killeenlistings.com or if you’re on the go text 'Ron' to 254-227-5799
Author:Ron Cooks Phone: 254-702-0064 Dated: May 22nd 2015 Views: 595 About Ron: I’m a retired Army Warrant Officer that served our nation for 25 years. I was born and reared in ...
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