Exploring Home Ownership
If you’re sick of dealing with landlords and paying rent for a property that you don’t even own, home ownership can seem like an oasis in the desert. A home of your own! That no one can tell you how to use (except maybe your neighborhood Homeowner Association, and they’ll be most concerned about the exterior, not what goes on inside the residence). A lot of young adults grow up thinking that they’ll have finally “made it” once they can buy their own home. But like a lot of things in the year 2017, it’s not that simple.
How rooted are you in your current town?
Do you have a lot of friends and family here? Are you happy with your job? How do you feel about the weather? These are all important things to ask yourself before you go applying for a home loan. There are some jobs that require more flexibility from its employees (the best example of this is the military). You don’t want to buy a house only to get transferred halfway across the country a year later. You also don’t want to buy a house, then realize in a couple of years that the winters are too harsh for you here, and you need to move to a place with more sun and way less snow.
There are some things you can’t predict, like a divorce or a sudden layoff. It’s best not to worry too much about those things. Instead, just focus on the things you know for sure about your current situation.
Where will you get the money?
This is the big one. Are you able to scrape together enough for a down payment? If not, do you and your family qualify for one of the USDA home loans that require no money down? Those loans are limited to people with a certain income and credit history, and you must also be looking to purchase a house in a rural or semi-rural part of the country. You’re not going to be able to get one for a townhouse in the middle of Chicago, for instance.
Whatever funding option you choose, you need to make sure the terms are fair and workable for you. Depending on the housing market in your area, you could pick up a loan and be underwater on it a few years later when property values fall. It’s a good idea to consult with both a real estate agent, as well as maybe a financial advisor. It’s nice to have options, but you want to be sure the options are good ones.
If you decide you like your town and have a good financial situation, then home ownership can be a truly great experience. Sure, there’s more responsibility, but a lot of people have fun doing things like picking out wallpaper samples and deciding what kind of window shutters they want to install in the living room. It’s not for everyone, and that’s OK. Don’t force yourself into something just because you think it’s what you’re “supposed” to be doing at this point in your life. It’s much easier to hold off a little on buying a home than to try and sell a home you bought for the wrong reasons.
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