Rick Renzi once said, “Home ownership is the cornerstone of a strong community.” While that may be the belief of some, it does not necessarily reflect the needs of all Americans presently. Home ownership isn’t easy. – you’ve got to want it bad, cause it’s going to put up a fight. To arm yourself for the ever changing world of owning a home, make sure you run through the following tests.
Reality Check Test:
It may seem simple, but you need to ask yourself one IMPORTANT question before hopping on the bandwagon of homeownership…Do you honestly want to own a home? Sounds so basic, but the answer to that question stems into a series of questions regarding finances and commitment (as you’ll read below). The allure may seem tempting; it’s your home to do with it what you want, you’re putting money into something that establishes and builds your credit, etc. But you need to really evaluate the responsibility of being a home owner and whether you are prepared for that step.
Financial Test:
Ask yourself, can you afford the mortgage payments? The expense of buying a home isn’t just the loan payment, but the homeowners’ insurance, property tax and mortgage insurance. Not to mention the costs of homeownership, unlike a rental, when something breaks YOU are responsible! Those additional expenses really add up to the bottom line. Then tack on car payments, college loans, child care, etc, and you’re looking at a lot to manage. Be sure that you can carry the financial burden that is associated with homeownership before taking the leap by reviewing your credit score.
Commitment Test:
Are you committed to staying in that house, that neighborhood and that city for a significant amount of time? Buying a home is a commitment, not only the financial, but ownership as well. When you buy a home it means you plan to stay there. Do not purchase a home with the intent to sell when you want to get out. It’s not that easy!
If you go through these tests and see without a doubt that you are ready financially and mentally to be a home owner, then find an agent to help you get started on your home search process. If not, don’t fret: consider renting a home as an alternative until you are.
Christine is the Content Marketing Coordinator for Homes.com. She's a small town girl at heart, who currently lives in Norfolk, VA with her husband and their fur baby. When she's not working, she enjoys cooking, decorating, traveling, and binge watching Netflix. As a proud Virginia Tech alum, she also loves cheering on the Hokies!
