Frist-Time Homebuyers: Are you Ready?

Choosing to purchase your first home is a big decision, and it should be well-infomed. Before you decide to commit, ask yourself the following questions, as posed by an article in The Columbus Dispatch:

1) Are you aware of home ownership expenses? Qualifying for a mortgage and having enough money for a downpayment are huge considerations--but they aren't the only ones. Homeowners also pay property taxes, mortgage insurance, utilities costs, and routine maintenance expenses. And what if you have to buy a new roof or A.C. unit? Certified financial planner Paul Dolce urges buyers to wait until they can put 20% down on a home to avoid mortgage insurance and to "establish a a pattern of financial discipline."

2) Are you willing to sacrifice your weekends? Maintaining a home requires several factors--such as lawn care, garden care, DIY projects such as painting, and home repair. On average, adults spend 3-4.3 hours on lawn/garden work each week, according to a 2009 Bureau of Labor Statistics survey. In other words, owning a home does not only require money--it also requires time.

3) Are you sure you'll want to live in this house for at least five years? You build equity while you live in your home. Thus, the longer you live there, the more financially practical it becomes to buy the home rather than rent it. Roughly, if you plan to live in your home for less than five years, home expenses and buying/selling costs may put you at a  loss. It would be more economical for you to rent.

4) Are you confident your relationships will remain the same? Is there a possibility of divorce in your future? What about marriage? Children? If these scenarios are a part if your relatively near future, you may want to delay buying a home. What home and neighborhood is right for a single person may not be so great for a family with two kids. Often, married couples like to buy homes together, so if you're in a serious long-term relationship, it may be smart to wait a bit longer before you take the plunge into homeownership.

5) What is your backup plan? If something happens to your job, or if you need to finance a new hot water heater or car, it's good to have at least six months of housing expenses saved up. This will act as a cushion and ensure that unforeseen expenses won't threaten your new home and lifestyle.

6) Have you researched the neighborhood? Neighborhoods come with different lifestyles. Is the neighborhood you're considering consistent with your way of life? For example, if you're a family with small children, you'll want to ensure that the neighborhood is family friendly. If you live near many retirees or empty nesters, they may be less forgiving when your kids run through their yards. If you like to entertain, you'll want to know that you can play louder music without bothering other people. Ideally, your neighbors will join in, and the area you live in will have lots of kids who can befriend your own.

If you feel confident with way you answered these questions, then congratulations! You're most likely ready to buy your first home. I specialize in first-time home buyers. Please contact me to discuss your home-buying wants and needs, and to see what I can do for you.