Things to Consider When Transitioning from Rent to Mortgage for the First Time

Things to Consider When Transitioning from  Rent to Mortgage for the First Time
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Moving into your first home is an exciting time but it can also come with an array of worries. There’s many things to consider when transitioning from renting a property to owning one. Often, the thrill of moving into your own home can blind you from considering certain factors in the process.

Here are a few things to take into consideration when looking to buy your first home:

Look at your expenses in total

When building your housing budget, take into consideration all of your expenses as a whole rather than just your mortgage payments. One of the most nerve-wrecking things as a home buyer is unaccounted for bills. To avoid that issue, take into account your expenses in total so that you can budget correctly.

Consider your mortgage payments, interest, possible taxes and insurance, and of course your utilities. You’ll also want to take into account your transportation costs. If you’re living in a metropolitan city then your monthly public transportation costs stay at a pretty standard rate but if you own a car then you’ll need to consider car payments as well as a gas budget.

Create a must-have checklist

Home buyers can have a tendency to fall in love with the feel of a home and often ignore the necessities that they required in a home from the start. Make a checklist before beginning your search of the things you need in a home and the things you’d like to have so that you know the difference.

It’s always great to have a good feeling about a prospective home but you don’t want to buy a place purely off of the emotional pull. Report to your checklist and see if the home meets most of your needs.

Think longevity

How long are you planning to live in your first home? If you’re thinking longer-term; is the location suitable if you’re planning for kids? Will you need to stay close to extended family? Are you choosing a neighborhood that fits your personality and living values? These are a few things to consider that venture outside of your present day likes and needs.

 

Sources:

http://www.foxbusiness.com/personal-finance/2014/06/19/10-tips-most-first-time-home-buyers-dont-consider/

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