Owning a home is a dream come true for many people. After all, there are many perks to homeownership. However, many people still struggle with knowing whether it is the right time to buy or if they should stick to renting. As a mortgage lender, First Fidelis LLC works with many first-time homebuyers to find their dream home when they are ready to take the leap.
Should I Rent or Buy a Home?
The decision to rent or buy varies on the individual or family. If you are trying to decide which route to take for your new living situation, there are some things that you should consider. Ask yourself how long you plan to live in that location. If you only plan to live in a city for five years, then home buying probably isn’t the right decision.
You’ll also want to think about your current financial situation. Do you have a lot of student loan debt? Are you saving for something other than a home? What are your future plans? The answers to these questions may not mean that you are not ready to buy a home, but it will help you think of all of the factors that should be considered before starting the process.
Pros of Owning a Home
While buying a home may feel like a hefty financial burden, it can actually be less expensive in the long run. If you feel as though you are ready to start the home buying process, it will likely be an excellent investment in your future because real estate increases in value over time due to both inflation and property value.
Buying a home also allows you to build up home equity over time. Home equity is the difference between the market value of your home and the loan balance on your mortgage. If you live in your home long enough, you will be able to pay off your mortgage entirely, and you will own the property with no monthly payments other than the taxes, homeowner’s insurance, and possibly an HOA fee depending on your neighborhood.
Of course, there are a variety of other benefits to owning a home. For example, you will not have a landlord, so you can update and renovate the home as much as you want. Renting usually means you can’t have pets without approval from the landlord. You also won’t be restricted if you want to paint the walls or hang decorations. You may not receive any of these benefits if you rent a home.
Cons of Owning a Home
While there are many benefits to homeownership, there are also some downsides that you will want to consider before determining which path is the right one for you. Homeowners are responsible for all maintenance and repairs, which can quickly add up to large bills. There are other hidden fees like mortgage insurance and homeowner’s insurance. All of these things can be expensive, so you end up putting a lot more money into your home than the market value of the property when you purchased it.
The perks of renting a home are that there is always someone to call to handle repairs and maintenance. Homeownership is a lot of work, so this is something everyone should think about before committing to buying a home.
So, You Decided to Buy a Home. Now What?
The home buying process is both exciting and stressful. If you decided this is the route you want to take, there are a variety of steps to complete before putting an offer in on a home. First, you will need to decide what real estate agent to work with, or if you’d prefer to try to find a home on your own. At some point in the process, you’ll also need to get approved for a home loan. First Fidelis LLC is a home mortgage lender serving homebuyers in the Kansas City area. We can help you get qualified for a home loan and on track to homeownership. Schedule an appointment today!