While it can be an incredibly exciting time in your life, especially since your monthly payments will no longer be going to pay off someone else's home, there is a great need for you to be focused, dedicated and willing to learn what the process of home buying entails.
If you are ready and eager to be a responsible homeowner, this process can be as smooth as butter. But if you're not quite ready in all the aspects we outline below, you may want to consider getting all of your homeownership ducks in a row before taking the plunge. You will be grateful you went into this immensely life-changing process being fully prepared, rather than struggling to make a new home fit into a life that might not be quite ready for it.
The first thing that is important to consider is if you are both emotionally and financially prepared for this kind of move? We will explore all the steps that come before you make an offer on a new house to help you determine if a move is still in the dreaming phase, or if you are truly ready to make this happen in the near future.
We recommend you take a look at the housing market in the area you are hoping to move to. Before you take any steps towards homeownership, you certainly want to make sure that it is a buyers market, otherwise you may find it wise to wait for the tides to change, which may take months, or maybe even years. So in that case, you might want to reconsider the area to which you are moving.
Let's move ahead to find out if you’re prepared to embark on this homeownership journey.
If there is any chance that you might have to relocate in the foreseeable future, or if your career is less-than-steady and fulfilling, then renting may still be a better option for you.
Buying is entirely more appealing than renting is, however, buying can turn out to be much, much more expensive if you cannot commit to it long-term.
If you do decide to buy a home, the fees that are associated are plentiful at the time of the deal: lawyers fees, home inspection, appraisal, and renting a moving truck; just to name a few. The financial advantages of being a home owner do not kick in until almost a decade after purchase. The advantage to renting is that you pay only your monthly rent and utilities up front, with no extra fees.
It is imperative that your finances are secure before you get the keys to your real estate. If your 5-10 year plan is still incomplete or unclear, or if you are unsure about any aspect of your job, it might be wise to stick with renting until you have a concrete plan for future fulfillment. The last thing that you would want is to be struggling to make ends meet when you have mortgage payments, repairs, and maintenance to pay for with a new home.
But if you still want to purchase a home, even though the future is still a little unsure for you, then consider buying a home that is easily affordable and will sell quickly should need be. Short-term ownership will likely not offer you the financial potential that is possible with real estate, and the cost of paying for a home's up-keep for just a few years as opposed to a few decades will cost you more than renting would have.
Of course you're aware that buying a home is one of the biggest purchases of a lifetime, which is why you want to be careful that you calculate what will be necessary for home buying to be a long-term, successful investment.
It can be a daunting task, but knowing for certain exactly what you can afford is a major part of the home buying process. You will want to double-check your income with every fee that will need to be paid. If you're not quite ready to outline every last detail of your finances and project that well into the future, then perhaps you're not yet ready to take the next step towards home ownership.
A good general rule of thumb is that your mortgage payment, including interest, insurance, principle, and property taxes, should account for no more than 42% of your income. Certainly, it would be ideal to spend less than that because you will want to ensure that you save enough space in your budget for unexpected expenses and savings.
After reading this, if you are feeling secure with your state, then go ahead and meet with the bank to obtain your pre-approval letter, and then you will be ready to make the next step to buying a home in Ucluelet! Please feel free to contact us, and we will show you some of the most amazing properties you've ever seen on the West Coast of Vancouver Island.
Get ready to Start Living in Ukee!