Tired of Renting? Here are Five Tips for Your Transition to Becoming A First-Time Homeowner
/
Before you move out of your apartment and purchase your first home, there are things you should know. As a renter, you have had the luxury of having a landlord to take care of everything. If you pay your rent on time and pay your utilities, everything else is usually taken care of by your landlord. However, as a homeowner, you will have additional responsibilities and costs. Here are some of the differences between being a tenant and a homeowner:
Upfront Money: When you start a lease on an apartment, you are asked to pay the security deposit and the first month's rent. However, when buying a home, you will need to have enough funds or secured enough financing to cover the down payment, appraisal cost, earnest money, private mortgage insurance, title insurance, etc.
Maintenance: As a homeowner, you will be responsible for maintaining your yard, contacting and scheduling repairs, and making sure you protect your property from everything from storm damage to termites.
Long Term Commitment: Apartment leases typically are for one year with an option to renew. However, as a homeowner, you may have a 15 or 30-year mortgage.
Buying a home is a significant investment, and it does come with several benefits, such as more space, tax incentives, and the ability to build equity.
Here are five tips to help you make the transition from renting to buying your first home:
Research: Once you have narrowed down your choices of where you want to live, research how much homes in your area cost.
Work on Your Credit Score: Banks and Lending Institutions look for a good credit score and a low debt-to-income ratio.
Mortgage Pre-Approval: Getting pre-approved for a loan will let you know what you can realistically afford. This helps you save time by only looking at houses within your price range.
Budgeting: Buying a home requires a lot of planning and budgeting. To make a smooth transition, plan for the upfront expenses and costs (your mortgage payment, real estate taxes, association fees, homeowner's insurance, utilities, maintenance, and costs.
Find a Real Estate Agent: Before choosing a real estate agent, ask your friends and family for recommendations and then interview several to make sure you choose someone who is experienced, knowledgeable, and who will work with your best interest in mind.
Homestead Title is a full-service title and escrow company. Since 1934, we have provided our customers with competent, thorough, and professional service. Before each closing, we search public records to clarify legal and financial risks for lenders, realtors, and other stakeholders in the real estate transaction process. Our energetic and capable team of real estate title professionals provide accurate investigations, rapid turnaround time, streamlined paperless delivery, and exceptional customer service. For more information, call us at (504) 581-6427 and let us provide you with a smooth and efficient real estate closing.