Signs You Are Ready to Become a Homeowner
There is no denying the flexibility that renting offers—you can move relatively quickly when you want, and you do not have to carry a mortgage for decades to have a place to live. However, if you are like many renters, you are probably at least considering the idea of owning a home.
But how do you know if you are ready for homeownership? Here are some reasons why you might be prepared to become a homeowner. If some or all of these resonate with you, it’s probably time to talk to a real estate agent you trust to start looking for a place you can be happy owning and living in.
The opportunity to become a homeowner can be both emotionally and financially rewarding when you have a long-term horizon. By following some sound first-time buyer tips, you’ll ensure that your journey from renting to owner goes smoothly.
The following are some of the most common reasons why renters decide now is the time to own a home:
1. Your Rent Keeps Increasing.
In most areas of the country, rents are rising and rising. The increase in rental prices can be frustrating for numerous reasons. You cannot anticipate your housing costs over the long term, which makes it hard to plan your finances.
You also probably feel some frustration with landlords—after all, who likes being told that they need to fork over yet more rent money in the coming year? There is also the uncertainty of the whole situation that can get to you. Your income is probably not shooting up and up each year, so why should you be expected to pay more and more rent?
When rent is going up and mortgage rates are low, it can be a good sign that you should start shopping for a home. If you think about it – when you are renting, you’re probably helping to pay someone’s mortgage. Unfortunately, that person isn’t you!
Some folks aren’t quite ready to go right from renting into becoming a homeowner. Often the reasons are financial ones. It could be not enough of a down payment or high amounts of debt, possibly from student loans.
At times, if you can find the opportunity, renting to own a house might make sense. Of course, there are pros and cons associated with rent-to-own arrangements, so make sure you understand them.
2. Interest Rates Are Incredibly Attractive.
One of the better reasons to go from renting to owning a home is when money is unbelievably cheap. When interest rates on mortgages are desirable, it’s like a flashing sign that says “buy buy buy.” Interests rates won’t stay at record lows forever. History shows us that they can turn instead quickly.