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When to stop renting and start owning your own home

Couple standing in front of their new home

Homeownership is essential to improved financial stability – you can build wealth and equity over time, for example, and take advantage of tax breaks. With so many key factors to consider, it is important to make sure you are ready for this important step.

Here’s how you’ll know it’s time to stop renting and buy a home of your own:

You need more space

Are you starting a home-based business? Planning a family? Or do you simply need more room for your belongings and your pets?

You won’t find a spacious kitchen, large storage areas, and a backyard in an ordinary apartment. Buying your own home gives you the opportunity to move to a place that can answer your changing needs.

You want freedom from restrictions

Rental properties usually come with a lot of restrictions when it comes to decorating, pet ownership, home improvement, and the like. You can’t really make the space your own.

Owning your own home means not having to ask the permission of the property manager or landlord. You have the freedom to design, decorate, and renovate your home as you wish.

Your needs no longer fit the neighborhood

Have you outgrown the old neighborhood? Then, it’s time to move elsewhere. If you live in the city, you may want a change of pace and move to the suburbs. If you’re raising a family, you may want to find a neighborhood in a good school district.

You are ready for the responsibility

The benefits of owning a home come with responsibilities. You’ll have to think about making mortgage payments and paying property taxes. You won’t have a landlord to call when repair and maintenance issues arise. If you are ready to take on all of these, then you are definitely ready to be a homeowner.

You are on top of your debt

Having a good credit score and being on top of your debt – paying your bills on time, maintaining a good credit-to-debt ratio – are great signs that you are financially ready to own a home. By managing your debt well, you are more likely to receive a good credit score, which will increase the chance of a getting lower interest rate on your mortgage.

You have saved enough money

Before buying a home, make sure you have saved enough money for a down payment. While you can negotiate the amount down to 5% of the price of the home, consider this – lenders see anyone who makes a down payment of less than 20% as a riskier borrower. You might have to take out an expensive mortgage insurance to compensate for the smaller down or pay higher interest rates on your loan.

Think of closing costs, too, which include fees for home inspection, title clearance, document prep, and the like. While closing costs vary, set aside from 2% to 5% of the loan amount. Determine how much the bank is willing to lend you by obtaining a mortgage preapproval before you start your home search.

You are ready to establish yourself

Do you see yourself living in your own house for the next five years without moving? If so, being a homeowner makes a lot of sense. Owning a home is also a great way to grow roots and build connections in the community.

Are you ready to get a home of your own? Aeris House Properties helps homebuyers find the house of their dreams in the neighborhood that best reflects their current Idea of Lifestyle in Arizona. Get in touch with us today here or call 602.466.9771. You can also send an email to info(at)aerishouse(dotted)com.