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Making the transition from renter to a buyer is one of the more significant transformations a person can make in a lifetime. Aside from the financial implications, homeownership signifies permanence and a close attachment to a community.
When you buy a home, you’re announcing that you’re securely settled in a particular area. This typically means that you will build meaningful relationships with neighbors, become engaged in local affairs, and participate in the community in various other ways. Homeownership carries financial benefits as well.
When you buy a home, you’re creating equity for yourself, which means that you are putting money into an investment. By contrast, when you rent, you’re simply handing money over to someone else. What are the signs that you’re ready to make this transition from renting to owning a home?
In this post, we will talk about 3 signs that you’re ready to make the jump from renter to owner. Of course, these aren’t the only signs that a person may be ready to consider buying a home. But these are certainly a few of the bigger signs. Let’s explore these signs in greater detail.
One of the key signs that you’re ready to transition from renting to owning a home is a secure attachment to the area you’re planning to buy in. We hinted at this in our introduction. If you’re thinking about buying, you need to be certain that you’re firmly planted in your target community.
In other words, you need to be sure that you are attached enough that you won’t get the urge to pack up and move anytime soon. In some cases, people who buy a home end up packing up and reselling the home and then living elsewhere relatively quickly, but this isn’t something you should plan on. As most potential buyers are aware, moving from one place to another is a big deal.
There is a great deal of work and stress involved with the moving process. You should be prepared, psychologically, emotionally, and otherwise, to remain planted in your home for a significant period of time.
In short, make sure that you will enjoy being a permanent part of the surrounding community. Young people often enjoy skipping from one town to another on a whim. When you buy a home, this just isn’t really possible anymore, at least not without significant hassle and cost.
Another sign that you’re ready to make this transition is that you’ve developed a good financial situation. This involves several things. For one, it involves having stable employment which you can depend on as a consistent source of income. If you become a buyer, the chances are that you’ll obtain a mortgage loan, and you’ll need stable employment to make that happen.
Another thing that’s involved with a good financial situation is a good credit score. When you go to obtain a mortgage loan, your credit score is one of the principal factors which impact your loan eligibility and interest rate. To put yourself in the best possible scenario, you’ll want to spend some effort toward maximizing your credit report. This may mean hiring a financial consultant (or a mortgage company) for focused advice on maximizing your report.
Finally, a good financial situation usually involves having significant cash savings. Cash savings will be helpful when you go to obtain a mortgage loan. What’s more, cash savings also demonstrate in unmistakable terms that you have the financial skills necessary to maintain a home.
Make no mistake, owning a home can be expensive, and this goes beyond just servicing the mortgage loan. You’ll likely have all sorts of additional expenses on top of your mortgage loan. Cash savings will make all of this much more manageable.
Yet another sign that you’re ready to become an owner is that you’ve thoroughly researched your desired home. As we’ve mentioned, owning is much more permanent than renting. If you rent, you can switch places fairly easily if you decide that you’d prefer to move to a new place for whatever reason.
But when you own, you’re more attached to your home. This means that you need to do copious research before making a final decision. Sometimes, people may think that they’re ready to become an owner only after a small amount of research.
But then those people commonly realize that ownership involves a whole lot more than they previously assumed. They may also later discover something about a home they were considering that turns them off. Simply put, a potential buyer needs to do a lot of research on their future home in order to optimize their experience.
This means researching mortgage rates, property taxes, home insurance, local crime rates, local schools, and so forth. If you’ve thoroughly researched your choice, the chances are high that you’re truly ready to make the jump from renter to buyer.
Again, these are just a few of the more clear signs that a given person is ready to make the transition from renting to owning a home. Buying a home is a complex process, and so there can certainly be many other signs worth mentioning. If you’re thinking about making this transition, Sammamish Mortgage may be a valuable resource.
Sammamish Mortgage has a team of professionals with expertise in the home buying process, and also the ins and outs of homeownership. We have been offering mortgage programs to borrowers in WA, OR, ID, and CO since 1992. If you’d like more information, contact us today. You can also View Rates to check current interest rates, or get an Instant Rate Quote. If you’re ready to make the transition now, you can even Apply Now using our online search function.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.