Roommates and rent increases eventually get old, so it may be the right time to start thinking about homeownership. Owning a home builds equity, comes with tax advantages, and gives the homeowner control over their living space. Becoming a homeowner comes with great responsibility—financially, emotionally, and practically. Before becoming a homeowner, consider these three factors.
Think About the Motivations
Anyone finding themselves in a situation of buying a home should think about their lifestyle, budget, and long-term plans. For example, if the goal is to travel the world or move across the country, it would be better to work toward those goals instead. It's also wise to consider plans for the home in the event of unexpected life circumstances, such as a surprise job opportunity in another state. Coming up with a plan—such as turning it into a rental property—can help potential buyers feel prepared for homeownership. A
loan officer is a great resource for first-time buyers who aren't sure whether to start shopping.
Consider Every Expense
While some people do pay more to rent than they would to own, consider all the costs associated with homeownership. Besides the
mortgage payment, property taxes and homeowners insurance, for example, are expenses to owning a home, although they can be built into the monthly payment. Additional costs to consider include neighborhood fees, utility bills, and lawn care expenses. On top of that, homeownership means no more maintenance man to fix the broken A/C unit or repair the roof—those financial burdens are the sole responsibility of the homeowner. Preparing a
budget including these costs will help determine if homeownership is the best choice.
Ensure Savings Are Healthy
Speaking of financial stability, a
savings account is very important for any buyer. Homeowners should have extra money in case of unexpected situations that may occur. From job losses to illnesses, life happens. Homeowners should have enough in savings to cover the mortgage for several months in the event of an unfortunate circumstance. Failure to do so could lead to unfortunate financial consequences. Anyone not prepared for an interruption in income should meet with a
financial planner or continue to pad their savings account until they're better equipped to handle such situations.
Start the Journey With Liberty National Bank
Whether it's your first home or downsizing for retirement, Liberty National Bank can help you prepare for whatever's next on your homeownership journey. As a
community bank, we'll treat you as more than just an account in our system. We'll work to understand your specific situation to best help you accomplish your homeownership goals. Visit your
local branch at one of our six locations in Central and Northwest Ohio to learn more.
