Everyone has their own reasons for owning a home; some for investment purposes, others for equity, tax breaks, and stability. How do you know if owning a home is right for you? Family, friends, media and real estate professionals all tout the pros and cons of homeownership, often making it even harder to make a decision. Buying a home involves a large investment of time, energy and money. Therefore, it is important to look at several facets involved in owning a home.
If you are trying to decide whether now is the time for you to buy a home, here are just a few of the aspects to consider:
Financial Stability—unless you have lots of cash sitting around or the means to legally get it, you will need to obtain a mortgage to purchase a home. With the recent real estate market bubble burst, mortgage lenders have tightened the purse strings, so to speak, when approving new loans. Having the ability to obtain a mortgage will be a key factor. This will more than likely be the first issue to be addressed in the home buying process. To secure a home mortgage, you must have a stable income, good credit history and at least a partial down payment. You will need to talk to a mortgage broker or lender about getting pre-approved. They can help you determine how much you can afford per month in mortgage payments and what price range of homes you should look in when purchasing. They will also be able to give you guidance regarding various financial options.
Home Maintenance—once you own a home, you are totally responsible for its upkeep. If the air conditioner goes out or a faucet leaks, it’s up to you to fix it, or hire someone else to fix it at your expense. Homeownership can be costly with yearly maintenance and repairs. Get a realistic feel for the extra costs associated with owning a home so you can be prepared going into the purchase. Talk to other homeowners about their expenses, or even come to me with any questions about the costs associated with owning a home.