First Home Checklist
Time to Move On!
Are you ready for this next big step?
1.24.2020
Scary times ahead…
Buying a home is a big decision… probably the biggest decision of an adult’s life. Whether you’re buying your first home now or purchased one 15 years ago, there may be things to consider before committing 100%.
Home ownership does come with some controversy. On average, 100 million Americans still rent, however it’s a two-to-one ratio when it comes to home buyers. If you’re over 30 years old, chances are you’re looking or are already living in a home of your own. The interesting fact is that in 2020, the economy favors renting over home owning. This is because mortgage rates are climbing higher and higher. Reinvesting your savings from renting will outperform owning and building home equity in terms of wealth creation.
Still convinced you want to own a home? No problem! It’s not as scary as some make it seem. We’ve got a few ideas on how you can save money, time, and patience before you officially sign the papers.
What am I missing?
The first thing to consider is keeping up with home inspections. The recommended time frame is every 5 years, however they don’t make it mandatory. If you want to eventually sell your home or even keep it totally safe, get it checked. In the long run, it will save you so much money. Second, choose your neighborhood first, house second. If it happens to be the other way around, drive by your potential home at nighttime and see the activity in that area. Is there a lot of traffic? Are the streets billowing with people? How’s the crime rate? Is it loud? A big mistake is that people fall in love with the home, move in, and realize their neighborhood is unbearable. Don’t be like them!
Another topic to consider is all about money. When looking at homes, don’t overspend. Check mortgage rates before you shop for a house to see what you can afford. Typically, lenders look for 20% down on a home (shop around and compare prices for lenders, too!). That means that if you’re looking at a $300,000 home, you would need to put down $60,000. Also, think about the resale value of a home. Typically, you live in your first home on average four years. How much will you be able to sell it for when that time comes?
What can I save money on?
You can save money on tons of things like real estate agents, mortgage rates, inspections, reducing your unnecessary expenses, and more. If you want to own a home, you may need to sacrifice splurges for awhile. Do you want to go out to eat every week, or put that extra $100 towards the mortgage? Eyeing up that new 2020 vehicle? Keeping your 2017 a few years longer can give you the leeway to replace those old, rusted pipes so the reselling value can rise.
You can even save money on HVAC and plumbing. Many times, these topics get overlooked. Check to see how old your HVAC unit is and get it checked by us to determine if it needs to be replaced. Did you move into a brand new home? Get on a maintenance plan! Even though your new home has a shiny new system, it can malfunction at any time. By getting on our maintenance plan, it can save you so much money in the long run by catching issues early.
Use these tips and tricks to determine if home owning is for you. It’s not as scary as you may think; so many people do it! It’s just simply a matter of being smart about your choices.