Homeownership

Is homeownership right for you?
Most people have thought about owning a home at some point in their lives. Deciding to buy a home is big decision which should not be taken lightly. Buying a home is the largest investment most people will ever make. However, owning a home is a big responsibility that not everyone wants to take on. Deciding whether to rent or buy is a very personal decision.

According to a recent survey conducted by Trulia.com, 76% of people surveyed believe that owning a home is part of achieving the American dream. For some people, homeownership enables them to have greater control over their living environment. Others believe that homeownership is a way of accumulating wealth. In spite of the many benefits of owning a home, there are people who prefer to rent a home or an apartment. Renters do not have the same responsibilities as homeowners, such as property maintenance, property taxes, and homeowners insurance.

So, the question of whether it is better to rent or buy a home is one that really depends upon your personal situation and preferences.

Are you ready for homeownership?
Here are a few things for you to consider:

• Do you have a reliable source of income?
• Do you have a steady employment history for the last two years?
• Do you have a credit history?
• Are you able to afford to take on the costs associated with owning a home and pay the bills you have now?
• Do you have any money saved for the down payment and closing costs?
• Do you have enough savings to cover unexpected events like job loss or illness?
• Have you thought about what lifestyle changes you might need to make, such as reducing expenses?
• Have you considered future plans that might increase your expenses, such as starting a family, paying for a college education for yourself or your children?

Steps to Homeownership
If you have considered the questions above and feel as though you might be ready for homeownership, these steps will help you get started:

• Complete our free pre-homeownership education course to learn about the home buying process. For more information, visit our Homeownership Education Online Courses web page.
• Obtain a copy of your credit report. If you find any errors, contact the credit reporting agency and request that the errors be corrected. To obtain a free copy of your credit report annually, visit the annualcreditreport.com web site.
• Analyze your current financial situation, including creating a personal budget to determine how much of a monthly mortgage payment you can comfortably afford. To learn how to do these things and more, consider taking our Building Your Wealth online course.
• Research down payment assistance programs that you might qualify for. To search for available programs in your area, click here.
• Interview lenders that offer the down payment assistance programs that you believe you qualify for.
• Set realistic priorities for your new home, including the neighborhood where you would like to live, number of rooms you need, and the size of the house.
• Interview experienced real estate professionals to help you find your new home.
• Be flexible. Consider homeownership opportunities in different locations (cities and states) with lower costs of living. There is a bargain out there that is just right for you and your family.

Deciding to buy a home is not a one-time decision. Personal and financial circumstances often change, so what may be best for you now may change with time. If you find that now is not the time to buy a home, reconsider it in the future. Owning a home is terrific wealth-building asset.

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