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Is it time to stop renting and purchase a home?

May 16, 2018

You’ve been renting for years, but want to purchase a home someday. How do you know when you’re ready to stop renting and move into your own home? Since purchasing a home is a big commitment, you want to make sure you’re prepared.

Asking yourself a few important questions will help you decide if now is the right time to transition from renting to purchasing a home.

1. Can I afford to buy a home?

Buying a home is probably the largest purchase you’ll ever make. You need to consider all the cost associated with purchasing a home.

• Down Payment (typically 20% of the home’s purchase price)
• Closing Costs (typically 2-5% of the home’s purchase price)
• Homeowner’s Insurance
• Utilities

At first glance, renting may seem more economical than owning, but that’s not always the case. A good first step is to talk to a loan officer to see if you qualify for a mortgage, and how much you can spend comfortably. These consultations are free and will give you a better sense of where you stand.

2. Am I settled in my job?

Not only is income important in buying a home, but being settled and happy where you work is just as important. Once you purchase a home, it anchors you to a specific area and can narrow down career prospects.

3. Where do I want to live?

You really need to make sure you’re choosing a home that is in an area where you will be happy. So, make sure you thoroughly check out the area you are considering.

4. Am I willing to tackle home maintenance?

You may be renting an apartment where there are no lawns to mow, sidewalks to shovel, etc. When you own your home, there’s no landlord to call when something goes wrong. You need to be sure you are ready for such tasks or willing to pay someone else. You may want to consider a new construction home. Everything is new and under warranty. Maintenance will be less of a worry.