From Renter To Owner: 8 Important Reminders Before Making The Transition
If you're renting now, you most probably dream of having your own house one day. In fact, you’re probably already looking into buying a property to your name right now. So aside from finding that perfect dream home, what else do you have to prepare for in buying your own place of residence? Here are 8 important reminders before making that renter-to-owner transition:
After the tedious task of searching and even after your seller accepts your offer, you may think that the job is done. You're move-in ready! Not just yet. Be reminded that it may take around 30-50 days to close a home. You have to make sure that you time it right with the end of your lease. You don’t want it to be a renter-homeless-owner story!
Costs, costs, costs! There’s a lot more to pay for upfront than just a security deposit as a renter—from deposits, home loan origination, title insurance, land surveys, home inspection, insurance escrow, appraisal, among others. Then, of course, you have to consider mortgages, home association dues, etc. in the long run.
More costs mean more math. This will be more than just rental payment vs. P.I.T.I. A more accurate comparison will also include after-tax-benefit homeownership costs and rent costs.
With all these costs, don’t worry; your tax deductions will significantly lower the costs of homeownership. Mortgage interest and property taxes will be deductible when filing annual tax returns and reduce your taxable income.
In getting the best mortgages, credit scores are very important. Those who lend want reliable and on-time payers, after all. If you only have one credit card, start getting more now, while you have time to grow your credit score. More credit accounts are seen as better.
You can’t only shop for the best-fitting home for you, but also the best-fitting lender too. Compare rates of your mortgage based on your loan type, location, purchase price, down payment, and, as mentioned earlier, credit history.
These include maintenance issues from the roof of your home down to its very foundation. Set up insurance and even an emergency fund for these responsibilities.
Consider the fixed features of the home, such as location; think of the things you may want to alter in the long run, even take note that the neighbors you will have in this new home may be your neighbors for life, and if need be, think about the property’s resale value.
Beyond aesthetics, driveways provide practical value that buyers appreciate.
Landscaping plays a major role in a home's appearance, value, and enjoyment.
One of the easiest ways to refresh a room is with a coat of paint.
This is the amount you pay upfront, usually a percentage of the home's purchase price.
As with the kitchen, the bathroom plays a huge role in making a good impression on home buyers.
Even if you’re not putting 20 percent down, we’re still talking about saving thousands of dollars.
Statistically, homes surrounded by offenders receive fewer and lower offers.
Do we want a move-in-ready home or a fixer-upper? Do we have time to tackle renovations?
As soon as you notice items you no longer use or enjoy, place them directly into the bag.
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