It is every renter’s dream to one day stop having to pay rent and instead have a home that they may call their own. But for many tenants, making the leap from renter to a homeowner may seem intimidating, especially when they consider the amount of payment needed to procure a property, get a home loan and the prospect of paying the mortgage.
However, becoming a homeowner may ultimately save you money and will benefit you financially in the long run. In this article we will be discussing 3 things you need to do when you are going from being a tenant to becoming a homeowner.
1. As a tenant, save as much as you can
If you are thinking of becoming a homeowner in the near future then it is best to start saving now. Owning a property does involve a lot of cash as initial cost, monthly mortgage payment, maintenance costs and taxes being among a few. Be sure to set aside a good amount of cash when buying property; also make allowances for miscellaneous charges that can be easily overlooked.
2. Make sure you do your research
Property ownership involves a lot of work and the need to possess certain specific information such as the type of property you wish to buy, how much a certain property costs within an area, how widely available is that property, what is the price of similar properties, what is the history of that particular property, what are the demographics of the area, what is the history of the area, and what kind of amenities are nearby.
Luckily this information is not hard to come by; you can contact a trusted and knowledgeable real estate negotiator, They will possess all this knowledge and more, and will help you when you are deciding on what type of property best suits your needs.
3. Check your credit status
When it comes to property ownership, your credit status is an important part of the deal as it will directly affect your ability to apply for a loan/ mortgage for a property. Your credit status tells lenders how reliable you are financially speaking and how likely you are to pay your mortgage in a timely manner.
This information will help them decide as to whether they should provide you with the finances for a property. Make sure to check your credit status regularly and to settle any debts or loans you have left before applying for a mortgage for a new property. A safe practice would be to ensure your credit status has at least six months of clean records before you purchase a property.
It is wise to prepare for homeownership as soon as you possibly can. Studies have shown that homeownership contributes to overall satisfaction in the quality of life; that is to say owning a house of your own can make you happier in general. And remember, if you need any guidance you can simply contact a trusted and knowledgeable real estate negotiator.
Want to learn more about homeownership? Talk to us for a free consultation on finding the perfect home.