After a long time of pondering, you now have decided that you will no longer rent. You liked the city you’re in and you now wish to own a house somewhere. Is transitioning from a renter to homeowner really hard? Through this article, you will know if you’re ready and the steps to take to achieve the title of being a ‘first-time homeowner.’
Preparation in Transitioning from Renter to Homeowner
Having a roof over your head that you can call your own is always a good choice over paying the monthly rent that nobody knows when it would end. Indeed, bidding goodbye from being a tenant into a house owner is one of the big decisions you make in life. In any case, deciding to own your own property means that you’re ready for stability but you will have more responsibilities. The following points are more discussed in detail.
Get Ready for More Responsibilities
Keep in mind that as a homeowner, you will be responsible for the maintenance and repair going in and out of the house. Paying taxes, mortgage, and insurance are also included in the set of responsibilities.
Save Enough Money
In the transition, you have saved enough to buy a house or you have built your credit score to secure a mortgage. In fact, this is the first thing you should undertake should you wish to not become a renter anymore. Down payments are a small percentage of the mortgage you’ll take but sourcing the money can take months to years. While you’re at it, build up a good credit history so that lenders will not think twice to lend you the amount you need to purchase your dream home. Perhaps, you can even get lower interest rates!
You Will Have More Freedom
Financial security is one thing, but you will also have more freedom as to your preferences which are restricted or limited when you’re a renter. You will now have a hand when it comes choosing the decor and setting up your favorite furniture. Furthermore, the rules you will follow are no longer the landlord’s, but your own.
Get Insurance
When something breaks beyond repair or your house is swallowed by fire, the insurance that you will pay monthly will cover those expenses. Insurance policies for homeowners are either mortgage insurance or homeowners’ insurance. The former covers when your loan goes to a default while the latter is for covering your real estate property. This insurance’s cost will be based on how much it takes to rebuild the house from scratch.
Social Awareness
As a renter, there are times that you feel that you’re disconnected from the happenings in your neighborhood. This changes when you become a homeowner. You will have a sense of belonging once you are immersed in the community because all of you endeavor to have a safer place to live in. Over time, you will also pay monthly or yearly fees to this community in contribution to the beautification of your neighborhood as well as major services like garbage collection, sewer cleaning, etc.
Conclusion
Nobody wants to be just a tenant until they reach retirement age. One of the most common dreams people have is to own a house under their name. It’s one of the big decisions people make in their lifetime, and so, you should treat it accordingly. Undeniably, the preparation to a shift to become a homeowner requires guts and perseverance.