5 Things You Should Know Before Buying Your First Home
By Space Coast Daily // April 9, 2019
Decide if Buying is Right for You
What Does Homeowners Insurance Cover?
Making the leap from renting to buying can be exciting. Whether you’re finally moving to start a dream job in a new place like Brevard County or moving in with your loved one, there is plenty you need first to learn before you even think about looking for a place to call your own. Let’s take a look at some of them now.
Decide if Buying is Right for You
Did you know that, depending on your city, it can actually be cheaper to buy instead of rent? It is thought that it can be 35% cheaper to buy in certain metro areas than it is to try and rent a place. Renting can often feel like you are just throwing your money away, so why wouldn’t you want to skip all of that and just buy a home instead?
It is understandable that you might not be ready to, however. If you still have a large amount of student debt, it might be too much money to afford mortgage payments as well if you don’t have a high enough income. Take a good look at your finances and decide what you can afford.
Buy Less Than You Can Afford
Most mortgage lenders will overestimate your budget as you might be able to afford a $300,000 condo on paper, but that certainly doesn’t mean you should buy one. Pick something a little smaller and a little more manageable as a safeguard against the future. You never know when the job market might change; potentially leaving you earning less and unable to make the mortgage payments on a much larger property.
Find the Right Insurance
Being a homeowner means that you will suddenly have to pay more fees and other taxes than you would as a renter, and you have to make sure that your budget includes these costs. One such extra cost is that of homeowners insurance.
So, what does homeowners insurance cover? Anything and everything from the structure of your house to various things which could affect like fire or snow damage depending on where you live. It is easy to find affordable insurance out there which can be tailored to match your needs and budget.
What is the School District Like?
Believe it or not, the quality of the local school district affects the house prices. You may not have any children or be in the position to have children for quite a few years, but you should still take a look at how the local schools perform. If you are searching in a neighborhood with a particularly good school district, it is understandable that prices here will be higher since there will be a lot of families attempting to move to the area, thus making it a more in-demand neighborhood.
Beware the Fixer-Upper
It might seem like a good idea to choose a home that needs quite a bit of TLC to save some money, however projects like this require a lot of time and a lot of money; even if you are going the DIY route. If you have a particularly demanding day job, you might not be able to commit the time needed.
Some light renovations are to be expected but be wary of any house which has structural issues; especially if they are in the foundation and/or basement. These are likely to be extremely difficult to repair.
Nevertheless, if you are ready to make the jump to a homeowner then you should definitely consider doing so. Take everything from this article into consideration and get prepared to become a homeowner!
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