6 Fears of Homeownership and How to Overcome Them
6 Fears of Homeownership and How To Overcome Them:
Many Americans that are looking to make the leap of faith to owning their first home can be fearful of the new responsibilities that are associated with owning a house. We have broken down some of these fears here to help us all understand the benefits of these newly added fears and responsibilities.
- Location, Location, Location! One of the biggest fears of homeownership is the fear of being stuck in one place. It can be hard to imagine that you will settle down in one place. This fear can be avoided a few different ways. Living close to family will always be a good way to see this one through. This doesn’t mean that we are suggesting that you live next door to them. Maybe just a close enough distance that when you have time, visiting them would not be too hard to do. Living somewhere that you have always dreamed of living is another great way to alleviate yourself of this fear. Location is key, if you dream of a “snowless” winter then moving anywhere it snows would not be a good choice. Being happy where you live is important. It is easier to allow yourself the ability to settle down once you are comfortable with the location. Deciding what is most important to you is going to be tough, think it through and construct a Pro’s and Con’s list to visually see the differences of the different location possibilities.
- Added Responsibilities: Another big fear of owning your first home is the amount of added physical responsibilities. This can be a plethora of different responsibilities depending on the region and / or climate of where you have decided to start looking. Shoveling snow can be just as irritating as cutting the grass. Some regions like Alaska, it may seem that extra physical responsibility allows for more control. Such as gathering rain water and filtering it for consumption. To some these types of added responsibilities would be a daunting task and to others these types of responsibilities are the reason to live in that environment. Either way rewarding once completed. This will make your home feel more like your own since you have poured your own sweat and tears into it. Adding your own personal landscaping and gardening touch into the yard or designing how the layout of the house will be. What goes her e and there is part of the homeownership excitement. Nothing shows commitment more than committing to buying your first home. It is a big step, and it is a great feeling once accomplished.
- Climate and Weather Patterns can be a huge deciding factor when looking to purchase your first home. Again think of the costs associated with the different types of insurance coverage that you will need to have can also be a very daunting task. However, in the grand scheme of things, this is a opportunity cost. If you want to live near the water and have warmer weather all year round, is it worth paying more per year in homeowners insurance and flood insurance? This is a question you will have to answer yourself if you are looking to move to Florida. Examining the history of storms and natural disasters is of course a monumental task. For instance, not many people know that it snows and ices over in Texas. This is something that can strike people as odd and even though the state of Texas is south it can still have serious ice and snow storms in the winter months. No matter where you live there are going to be unfavorable weather conditions of some sort, (i.e. Hurricanes in Florida) it is just up to you to decide what you would like to adjust for. Alleviate this fear by understanding what climate and weather you like the most.
- Financial Responsibility is a major fear of becoming a homeowner. Purchasing your first home should be regarded with due caution as this is going to be a place to grow. Being financially responsible is important because unlike a late rent check, a late payment on your home is going to cost more and if continued, could end up costing you the house. However, there are plenty protocols to help prevent this from happening. For instance, when applying for the Home Mortgage, it is important to have a budget in mind before looking for a house to buy. Even if your income allows for a bigger house, understanding the importance of the ability to repay is going to ultimately allow you to keep your house. It can be scary to think of, however, it is important to consider. If you lose your job would you be able to make the payment on time before you landed a new job? This is why sometimes buying a big expensive house for the first time can be risky. We all know, or should know how important making mortgage payments are. This fear can be alleviated by saving extra money from your paycheck each month and putting it aside just for the mortgage payment.
- Room for Growth is another First Time Home Buyers fear. This fear is can actually be solved buying your first home. Buying your first home even if you intend to grow the family or eventually get into something bigger is completely normal. Getting into the first home allows more confidence the second time around. If you need a bigger house but are in love with the home you have then look into the cost of adding on some extra rooms versus the cost of buying a bigger house. Expanding the house to accommodate a newborn will be a great feeling no matter the cost if this is the route that you decide to go. Unlike apartment living, you can add what you like to your home to make it your own which carries a very special benefit in itself.
- I want to buy a home but do I even qualify? This can be one of the most daunting questions to have to answer. The qualifications of owning real estate can be surprisingly more realistic now. There are many ways to allow a first time homebuyer to qualify for their first home purchase. Be sure to contact your local bank or lender to let them know you are looking to purchase your first home and are interested in options for First Time Homebuyers. They should be able to steer you in the direction of looking into what options are available and what different types of down payments would be required. Some programs offer lower down payments such as a FHA Home Loan that can offer a 3.5% down payment. However this type of mortgage will carry Private Mortgage Insurance (PMI) for the life of the loan. This PMI is a monthly insurance premium that is paid to the Investor that carries the loan to ensure against any mortgage default. This does not cover the homeowner by any means. For FHA, it does allow for a lower interest rate and less strict qualifying guidelines for homebuyers. If you have good credit and want to put a little more down on the house, consider doing a conventional refinance. Conventional refinancing also carries PMI, however this PMI can be dropped off once you have established 20% equity position in the house. There are also home loan options for those of you that have served our country. For all active and reserve veteran applicants; a VA Home Loan is a great option to consider for purchasing a home. There are many options out there, this is why consulting with your bank or lender will open doors of opportunity to see what is available.
There can be some obstacles and fears to overcome with purchasing your first home. The rewards of owning your own home are endless. Do not let the naysayers convince you otherwise. There are always people that will say that owning their own home was a mistake. No matter the situation that you are in, if you are interested in buying a house; Apply! If you do not qualify at this point at least you will have better focus and understanding of what it is that you will need to qualify. This will give you something to work towards. Be smart, shop around and see what options are available. No matter what, owning a piece of land on Earth and creating something seems a lot better than paying a landlord a check each month.
If you have any questions about this or would like more information, please check us out on the web at www.HomeownersConsult.com
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