Making the decision to buy a home can be a daunting one. Many people rule out purchasing a house, as it can feel intimidating and they don’t think they qualify. In reality, many renters have the qualifications and ability to become homeowners. It is a major financial decision but is also extremely rewarding and empowering to be able to own where you live. Here are 4 signs you may want to consider becoming a homeowner.
You love where you live and plan to stay for a while.
Renting is great for people that are new to the area and are unsure if that is where they want to live. If you’ve been living in your city for a few years and plan on settling there, it may be best to consider buying. Also, if you’ve been living there a while and working in the same industry, that will help you qualify for a loan. Mortgage lenders typically require at least 2 years of stable employment in the same industry to approve your loan.
Your rent keeps increasing.
If you have been renting in the same area for a while now, chances are your rent has gone up each time you renew your lease. Typically, landlords and apartment communities will raise your monthly rent to match market prices. You can expect a $50-$120 rent increase each time you resign your lease. After a few years of renting, you are probably paying more in rent than you would on a mortgage. Mortgage rates will stay the same each year and your money goes towards equity. If you’re paying $1600 a month, that’s $19,200 annually going to your landlord each year instead.
You have the money for a down payment and an emergency fund.
The down payment is what usually intimidates people from buying a home, however, you don’t necessarily have to put down 20%. An FHA Loan only requires you to put down 3.5%. For a $250,000 home, you would only need to put down $8,750. That’s less than $10,000! It’s beneficial to have an emergency fund as well for any unexpected repairs. Townhomes are great options for first-time homebuyers as they are part of an HOA which typically covers exterior repairs and lawn maintenance.
Your family has outgrown your current apartment or townhome.
An apartment rental is great for roommates, singles, and couples. However, the apartment lifestyle can become burdensome if you have a growing family. A 2 Bedroom apartment usually only goes up to about 1500 sq ft, which doesn’t leave you with much space. Additionally, the shared walls of townhomes and apartment rentals come with the possibility of noisy neighbors disturbing you and your family. Lastly, let’s be honest, kids can be messy. You may not have the ability to change your carpet out for vinyl flooring or repaint your walls depending on your landlord’s policies.
These are only a few reasons it may be time to consider homeownership. The best first step is to reach out to an experienced Realtor. There are agents that specialize in assisting first-time homebuyers and are happy to help you begin the homebuying process. The best part? A Realtor doesn’t cost anything to hire, the sellers will be the ones to pay your Realtor.
Homeownership is more attainable than one might think! Who do you know that is ready to buy a home?