Buying a home is exciting. If you’re young, it gives you the sense of finally stepping into the adult world. If you’re at some other life change (marriage, starting a family, empty-nester) the idea of a larger (or smaller) space of your own gets those possibility juices flowing.
But … in the heady rush into new home ownership, the temptation to bite off more than you can chew financially is strong enough that potential homeowners ignore that niggling unsettled feeling, or even the warning bells clanging in their heads. Once the deal is done and move-in day is a dim memory, the reality of monthly expenses takes over.
Does that mean you shouldn’t buy a home? Of course not! What is means is that homeownership can change your lifestyle in ways that you may not anticipate. If you’re looking at buying a home, try incorporating those changes into your life beforehand to see if they are livable.
Higher monthly payments
For some buyers, the actual mortgage payment is less than they pay for rent. In fact, many would-be buyers consider this as the basis of their potential move into ownership, and marketers promote the idea as well. But, ownership requires more than just making the mortgage payment. Other monthly outgo includes:
Have a plan
Before purchasing a home in a given area, find out an average of these other costs. To figure out interest and PMI, check out a mortgage calculator. For property taxes, search the local county records or ask The Begley Team to find out the prior year’s assessment. Add the monthly extra for all of these items to the potential mortgage payment. If it is more than you pay for rent, try living for three to six months paying the difference into a savings account that you do not access.
You may be willing to make sacrifices to afford the home of your dreams, but remember that you need to live with those sacrifices for a very long time. Giving up cable, not eating out and delaying buying new clothes seems doable in the first few months, but eventually, you may tire of the restrictions to your lifestyle. That’s why it is important to know before you buy a home how much monthly outgo fits into your lifestyle.
The Begley Team, as real estate professionals, we know how to help you gather this information. We want you to be happy in your new home. After all, we want you to recommend us to others, so if we don’t help you determine the best situation for you, we only hurt ourselves.
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