Many persons are hesitant to buy a home, sometimes they are intimidated by the market and the process. Others just feel like maybe it’s best to avoid the hassle of the paperwork and everything related to the real estate transaction by just renting. Today we´ll share some information that will hopefully help you decide if buying a home is currently the best option for you.
First Things First: If You Want to Buy You Should First Consider Protecting Your Investment
The number one thing you need to do when you start to consider buying is to make sure that your investment is protected. Buying a home does require a substantial sum of money and it is an investment that you do not want to risk. For many, owning a home is a great achievement but it does require hard work and much effort for many to attain. That is why it so important that you protect it against any possible risks.
Buying a Home Will Usually Require That You Purchase Different Types of Insurance Policies
There are different types of insurance that you will need to consider. The first and most important insurance policy that you need to be aware of is are title insurance. Title insurance allows you to shield your investment from any previous situations that may come up in the future and alter your right to the property, placing your investment at risk. For more information on what title insurance covers you can read our previous post here. Buying a home is an important step for many persons and it is not something to be taken lightly. Contact us now and learn about the necessary protection that title insurance can provide.
Paying Mortgage vs Paying Rent
For many, paying mortgage vs paying rent is truly the deciding factor in regards to whether or not they choose to buy a home or rent. Sometimes rent in one place will be more expensive than the mortgage in another location. Location greatly determines how much you will have to pay monthly. This is something important to consider and take into account. Are you willing to get a home in an area that may be cheaper to buy so that you can own your own home? Or would you rather pay rent in a location that is more expensive to buy in and just rent there? Sometimes opportunities will come up in which a home will sell at a reasonable price in a more expensive area. It can pay off to always have open options and to continue to save up while you find the ideal house.
Save Then Consider Your Income and How Stable It Is
Another important factor in deciding whether to rent or buy is income. Having enough income to pay a mortgage is necessary but it is also important to have a stable job and to first save up. When you rent and your income decreases for any reason, you have the option of looking for a place with lower rent payments. This is not the case when you buy a home. Your mortgage payments need to be paid in a timely manner and will rarely decrease in the first years. You need to take this into account and try to have a significant amount saved up for the downpayment and another sum for emergencies.
Take Into Account Your Preferences and Circumstances
- Responsibility. How much time and effort you can put into your home also plays a role. Owning a home means completing repairs and maintenance and not everyone is willing to do or able to do that. Some actually find renting better because fixing things and getting maintenance done is usually taken care of by a manager or whoever is in charge.
- Commitment. Some people are just not ready to settle in one place and stay put for long. If you enjoy moving, traveling often or your job requires that you go from place to place, it may not be time to tie yourself down with purchasing a home to live in. On the other hand, you may want to look into buying a property as an investment only and not necessarily to live in.
Get Help From the Best Title Insurance Agency in Windsor
Consider all your circumstances and take into account your needs and wants to help you decide what is best for your specific situation at this moment in your life. When you are ready to buy a home don´t hesitate to ask questions and clear up any doubts you may have in regards to your investment. Contact The Group Guaranteed Title at 970.613.4364.We will gladly answer all your questions and address your home buying needs and doubts.