Home ownership… are you ready?

Home ownership is a big commitment, are you ready?

Hello everybody! Hope you are all doing well. I just wanted to take some time and talk with you guys real quick. I have a decent amount of people who are interested in purchasing homes right now (probably because interest rates are on the floor these days) despite the fact that mortgage loan rates are decently high. I realize high mortgage rates might be enough to scare some people off from purchasing a home, but if you look at the dollar amount that you spend over the lifetime of your loan with the current low-interest rates, you’ll be saving more in the long run. 

That being said, I think the first step of home ownership isn’t going to be your credit score, it’s not going to be your finances, it’s not going to be your debt to income ratio. The first step of home ownership is confirming whether or not you truly are homeowner material. While that may sound simple enough, there is a lot more that goes into it and you may be surprised by the result. Finances aside, there is a lot that more than meets the eye when home ownership is concerned. It can be emotionally daunting! Stuff can break at any time (typically right after the home has been closed, (not sure why that is but hopefully that won’t happen to you!)) It is important to take a look at your lifestyle. If you’re always on the go, home ownership honestly might not be for you.

Renting a home has its benefits. I know it’s probably an odd thing to hear a realtor encourage you not to buy a house, but the process should be as pleasurable as possible with minimal stress. It shouldn’t be something that you regret or something that you look back on as a mistake in your life. So really the first thing you should do is just evaluate yourself and your lifestyle. See if you’re even responsible enough to own a house. I know a lot of times when you’re renting and something breaks the first thing you do is call the landlord and have them get it fixed. But if something breaks and you own the house, guess who’s responsible for that? This might come as a shocker but that would be you. If you don’t have the fixer-up know-how or if you don’t know someone who does know-how, or you don’t have the money to back up those repairs – it’s probably not a great time to buy.

Buying real estate is a great investment if you’re ready for that in your life. Not everybody is at that stage, however,  which is why the importance of sitting down with friends, family, and most importantly your financial advisor to get their two cents on the home purchasing matter. 

I encourage everyone reading this who is interested in home ownership to evaluate yourself and think about where you see yourself in the next five, ten, twenty plus years. If you have your life mapped out then you are probably ready. But if not, there is no shame in taking a bit more time to figure yourself out. Remember, you can always call me for any extra advice. It’s been a pleasure as always, I’ll talk to you guys later.