Being a homeowner has its perks and a lot of responsibilities. So before you commit to years of paying for a house, make sure you understand what you're getting into.
First, think about the costs. There are many costs associated with owning a house. You need to pay a downpayment, home insurance, and other fees needed to close the contract. When you move into a new house, you will also need to spend on moving, buying furnites, appliances, fixtures and landscaping. And there is always a possibility that the property you purchased will depreciate.
If you're used to calling the landlord whenever there's a problem like a leaky faucet or a broken cupboard, that won't be the case anymore. As a homeowner you will now be responsible for all the damage incurred from plumbing, appliances, paint job, roofing and so on. And all these cost money. You can expect to spend more on repairs and maintenance if you purchase an old house.
If you want to find out if you're ready to become a homeowner, try to do the following:
If after you've considered these and you realize you don't have enough funds to own a house, don't lose hope. You can also turn to lenders or think of creative ways to come up with a financial source.
Don't overlook home insurance. Factors like the kind of house you have, the age of your house, your credit and insurance record, and new cases like toxic mold cases can increase insurance rates.
According to a report by the National Association of Insurance Commissioners, in 2007 homeowners spent an average of $822 on home insurance.
But despite the financial woes, there are also financial benefits of owning a house. Mortgage payments are more consistent than rental fees that can increase anytime. There are also tax benefits and the likelihood that your property value will increase as ayears go by. And most of all, it feels good to have your very own home.