Should I Buy a House? First Time Home Buyers

Should You Buy A House?

There are a lot of things to consider when deciding whether or not to buy a home. Are you ready for the commitment? Here is a list of things you should ask yourself before buying:

Do you have any big life changes coming up?

Can you afford to buy a house?

Do you have money saved for a down payment and potential closing costs?

How long do you plan on living in this house?

Below we’ll go over each of these questions in depth so you can answer them and see if buying a house is best for you.

Can You Afford To Buy A House?

It’s important to crunch the numbers and figure out how much you can comfortably afford for a house each month, including mortgage payments, insurance, taxes, and other monthly expenses.

Do you have a stable income/job?

How much debt do you have? Think about credit cards, car payments, student loans, etc.

How is your credit?

Do you have and use credit cards or loans?
Do you know your current credit score?
Do you pay your balances off on time?

You do NOT need perfect credit or to live with zero debt to buy a home but these are factors you want to keep in mind that will affect your mortgage.

Do you have some money saved up?

Keep in mind you want to have money saved up for emergencies in addition to saving up for your down payment and closing.

How much can maintaining & repairing a house cost?

Every house needs maintenance and repairs at some point – it’s unavoidable. Be prepared to budget for things like painting, roofing, and plumbing repairs.

How Long Do You Plan on Living in This House?

If you think you’ll only be in the house for a few years, it might not make sense to buy – especially if there are associated costs like closing costs and real estate agent fees.

Are You Making Any Big Changes in Your Life That Could Affect Your Finances?

Some big changes in your life that could affect your finances include getting married, having a child, or changing jobs.

If any of these things are on the horizon for you, it’s important to factor them into your decision to buy a house.

This is a good point to bring up the next part of the main question of this lesson – Should you buy a house…or rent?

Should You Buy a House or Rent It?

There are pros and cons to both buying and renting a home, so it’s important to weigh all the factors before making a decision.

Buying a house comes with some big advantages – like building equity over time and deducting mortgage interest from your taxes.

But renting can be more flexible for specific situations and stages of your life that we mentioned previously.

Benefits of Buying a House

It’s an investment that builds equity over time.
You can deduct mortgage interest from your taxes.
Freedom! NO Landlords! YOU own your home and have control over renovations so you can make your house the dream home you want it to be.
You can find a mortgage that fits both your budget and goals.

Benefits of Renting a House

Your landlord is often responsible for repairs or maintenance
Moving can be easier because you won’t have to sell your home or find tenants.
Upfront costs are often cheaper because you don’t have to buy home insurance or pay property taxes.

Key Takeaways!

Now that you’ve gone over everything you need to know to buy a home and the benefits of buying versus renting it’s time to make the decision.

Here are the questions you should ask yourself:

Should you buy a house?

Answer these questions: