Everyone dreams of owning their dream home, and for a first time home buyer the steps to owning a home can become overwhelming & it can be broken down into a few simple steps.
- Figure out if home ownership is right for you.
Contrary to popular beliefs, home owning is not the same as renting. There are different factors to consider other than paying a lump sum of money every month. There are additional costs that apply to owning a home, such as, maintenance and ‘property tax’, which is why you would need to evaluate your financial health and your current financial situation. Often times people like to ask “why rent when you can own?” which can be good reasoning to an extent. Taking up more of a financial obligation can be very troublesome in the end.
- Finding a home that’s right for you
From planning a family to down-sizing, finding your ideal home should be the best option to suit your needs. Questions you may consider are: would you want a bigger home with more rooms because you want to expand your family? Depending on the area you’re buying in, the bigger the house, the more the purchase price. A small home with one room & a guest room because you’re looking to downsize? Many people buy bigger homes in order to rent out rooms or the basement in order to make it an investment property.
- Being Financially Ready for a home
Finances are a big determining factor when getting a mortgage so making sure you’re in a financially healthy state is very important when deciding to buy a home. There are ways to figure out your financial health, such as examining your utilities bill, your debt to income ratio, and shopping around for the mortgage that’s best for you. There are also underlying financial factors that come into play before you even buy your home, such as mortgage application fee, home inspection fees, closing cost, required renovations and unexpected charges. It’s never easy to gage how much home buying will cost you, it’s always best to have a financial cushion.