The first step in becoming a new homeowner is considering if home ownership is right for you and your family. It is important to be aware of the financial aspects and how they differ from renting a home so that you can be certain you are prepared financially as well as ready to take on the added responsibilities involved.
From the financial aspect, you need to consider the upfront costs, ongoing costs, and how to budget for major repairs, as well as cover the smaller repairs. As a tenant, you don’t have to be concerned with property taxes, maintenance, repairs, and other ongoing expenses, but as a homeowner, you will need to handle those.
While rental rates can increase from year to year, so can mortgage payments, and you also have to be comfortable with the potential change in the value of the home. It is common for home prices to increase as you are building up equity in it, but the opposite can also happen.
Owning your own home is full of benefits and joys, but it is a large investment, both financially and in the time and effort it involves to keep it properly maintained.
At the BRM Lending Team, we recognize that buying your first home is an important decision, and we want to help you evaluate whether it is the right step for you and your family. Contact us today to discuss what is involved in securing financing and how to get off on the right foot for your future financial success.