Are You Really Ready to Buy a Home?

To most people, the home buying process can seem like a complicated and confusing process Even though it seems like a daunting task can be made much easier if you take things step-by-step, you will soon be holding the keys to your own home! But before going into the process of buying that home, you really need to honestly ask yourself if you are honestly ready to buy a home in the first place! Think about this. Do you enjoy or even prefer moving into different places or areas of the country? Do you prefer to use your money for things like vacations, appliances, retirement or having your own business? Do you dislike doing typical household maintenance, repair and handyman work around the home? If you answered yes to these questions, you may not be ready to delve into the home buying experience. You may think you have a lot of good reasons for buying a home. but it's very important that you should also consider your reasons for not wanting to become a homeowner! Remember that buying a home isn't just the biggest financial decision you'll probably ever make but it can also be the most nerve wracking emotional choice in your life! So be prepared to make wise decisions and be willing to logically and unemotionally think out the entire process before you buy. Basically, look before you leap! In today's hot real estate market, buying a home always seems to be a great idea, but it's important to completely understand that homeownership also comes with a great deal of responsibility too! Of course, being a homeowner is something to be proud of, but it also means having to invest heart earned money, time, energy and financial resources. So you have to really be sure this is right for you. Typically the first thing that comes to mind when we dream of homeownership, are the wonderful things that are connected to it, which are great reasons for buying a home. Here are some of the tremendous advantages for buying a home: Yes, it's really nice to think about the positive aspects of owning a home, it is also a crucial part to consider the downsides as well. Here are some of the disadvantages on home buying. Financial Stress Probably the most common feeling in the home buying process. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances. So it's very important that you carefully manage your budget and finances to make sure that you can meet all of your obligations. Many new homeowners get a shock in their first year of owning a home. Proper planning and preparation can help you avoid this. Maintenance Costs Unlike renting where a landlord may take care of the maintenance, when you're a homeowner you are solely responsible for keeping your home in good working order. Keeping a home operational and looking good requires time and money. Once again, it's important that new homeowners carefully monitor their finances and also carefully keep an eye on small maintenance issues and work on them before they become huge repairs. Higher Monthly Payments: It's entirely possible that you will pay more each month for your home payment that you ever did as a renter. You not only have to pay the mortgage, you pay taxes, you pay utilities, you pay expenses, you pay for maintenance, everything. And when you add that up it can be shocking at how much that can be. Yes, in today's tax code there are benefits that come from homeownership that can defer some of that expense, but you still have to pay it first! Still think you want to buy a home? GOOD! If you feel that now is the time and homeownership is right for you, you need to make sure that you are truly financially ready to do so. To avoid any future surprises, you can do some financial planning to see where you stand, including: calculating your net worth, determining your current monthly expenses and your current monthly debt payments. Gathering this detailed information and knowing things like your net worth is important because you'll need this information when you discuss financing with your mortgage lender. Going through this exercise will give you a snapshot of where you stand financially and show you how much you can afford to invest as your down payment on the home purchase. You do not want to rush this process since finding the best type of financing for your particular situation will determine how much you will be paying every month. Also be sure to work with a trustworthy and professional real estate professional. In today's market there are real estate agents and Realtors that work specifically in representing buyers. These professionals will help you in everything from finding the right home for you, to helping you understand the contracts and paperwork, to negotiating the deal for you, and representing your interests in the buying process. They can even help direct you to good financing sources and be a "one stop shop" to help you in every step of the way to find your home and get you in it with the least amount of stress. After you've found your dream home, and contracts have been accepted and your financing is in place you're ready for closing day when you finally settle the transaction and become the proud, legal owner of a home that you can call your own. Although this is a GREAT day, it's also very confusing and full of papers flying around and being signed. Your closing attorney or title company will handle all of the details of the closing including making sure the money is in place from your mortgage company, make sure that tax bills are paid, any outstanding debts resolved, takes care of the seller's paperwork. Bottom line, they make sure that all the T's are crossed and I's are dotted so that when you leave you'll have a deed which calls YOU the owner of that property! When all the dust settles, you'll be handed the keys and you'll be able to walk into a home that you can call your own! Enjoy the moment and congratulations on becoming a homeowner!