BY MAURICE ANDERSON
In today’s sellers market looking for a dream home can be an exhausting task to say the least. It is also a very fulfilling endeavor once you find your dream home. Buying a property whether it is your first, second or third is the biggest financial and life milestone that our society values today. In order to be fully prepared you also have to mentally conceive it will be a very emotional investment. Many individuals think about the mortgage when they are considering looking for a home and base their conclusion on whether or not they are ready to invest in a property based on that result. Getting a pre-approval is an important process in the home buying procedure, but you should also take heed and consider there are many other expenses that first time home buyers will need to ponder. You need to be ready for the shift that homeownership brings into your lifestyle. As a renter you may have the option to pick up and go on an exotic vacation. Instead you must realize that you will have to consider the impact of long absences on your finances, your family and the responsibilities you now have as a homeowner. However, if you are not prepared, homeownership may end up becoming a negative experience. It may be difficult for you to enjoy your life. In turn, it can be strenuous for you to be capable to accommodate additional financial responsibilities for any home repairs that may arise in the future.
Buying a home is an emotionally draining process. Going out to view properties time after time. The stress of whether or not your offer will be accepted, especially in our seller’s market that adds more fuel to the fire with multiple offers and “bully offers.” A bully offer is an offer submitted by the buyer’s agent prior to the date the listing agent stated all offers will be reviewed. One key factor to making sure your dream home is safe is by hiring a home inspector to protect you from any problems that may arise after you get the keys to your dream home. A good inspection will point out any problems with the house such as foundation, wiring or plumbing issues. These problems can be financially detrimental to the monetary funds you have saved. Keep in mind it is okay to back out of an offer if you find significant problems with the home. An emergency fund to cover home repairs can help give you peace of mind for years to come. Once you find an area that has the amenities you require near your dream home you will be ecstatic with your purchase.
Owning a home has advantages for building generational wealth if you make the correct calculated steps. Here are some questions that you should ask yourself before buying a home. Are my finances in order? How much credit card debt do I have? Do I have any outstanding auto loans, student loans or personal loans? Have I saved enough for a down payment? Your down payment on your first home will be the single largest investment purchase you will ever make including the unforeseen costs that are associated with your purchase. What is my credit score? The credit score that you acquire is what the bank uses to determine how well you handle credit. Granted, there are circumstances that may have been out of your control such as fraud or medical bills but those too should be rectified before shopping for a home. After you submit an offer and it is accepted you will need to start looking forward to your closing costs. Closings costs accumulate expenses such as insurance, taxes, money for repairs if it is not taken off the purchase price and furniture to furnish your beautiful new dream home.
In retrospect, the amount of money you pay for rent may be similar to the amount you pay in principal and interest on your mortgage. However, your mortgage is not the only cost you should consider before owning your home don’t forget about water and sewage fees, utilities and property taxes. The wrong turn down the right path will still lead to the wrong destination. Patience is a virtue and buying a home is something that should not be rushed into.