So you finally made it out of your parent's basement and into a new home…congrats! 😛🏠 Becoming a homeowner is a big #adulting power move. However, not everyone's celebrating. 😰
In fact, many new homeowners report feeling a sense of dread and regret over their decision. Not asking the right questions or having a clear vision could get you into some deep homebuying doo-doo. 💩 Luckily, you can avoid those negative feelings with our advice!
Here’s Five Fast Facts on how to avoid homebuyer's remorse:
- 🚶 Don't Be a Follower - Society tells us that buying a house is the tippy top of the adult achievement mountain. However, you shouldn't buy a home just to keep up with the Joneses. Take the time to consider what home ownership really means. Ask yourself if you're ready to be locked into a 30-year mortgage and a specific geographic location. Also assess your current employment situation and make sure it's stable.
- 🛟 Stay Afloat - Saving money to buy your home is a given. Draining all of your savings on a down payment might not be so smart. If you're wiping out all of your reserves and tapping into your emergency fund, it might not be the right time for you to buy a home. Don't forget, you'll also be on the hook for repairs, home improvement projects, insurance, and utility bills. Stretching yourself and your budget too thin could get you into a financial jam down the road.
- 🏚️ Damage Control - Most homebuyers are focused on down payment money and the monthly mortgage payment. However, when you're a homeowner, you're the one responsible for emergencies, which add up quickly. A flooded basement, weather damage, or termites can be major financial blows. Before you go house hunting, make sure you're financially prepared to weather unexpected storms.
- 📈 He Shoots, He Scores - Another thing to check is your credit score. Even if it's good enough to get approved for a mortgage, high credit scores get the best rates. The best deals on mortgages go to folks with credit scores of 740 and higher. If you're not quite there yet, it might make sense to put off home buying plans and focus on increasing your score.
- 💸 Where's the Rent? - Although you might be sick of renting, it makes more financial sense for some people. A deposit on a new apartment costs far less than a down payment, plus your landlord is responsible for maintenance and repair costs. Additionally, a big perk of renting is location flexibility. If you get sick of your area, it's way easier to sign a new lease somewhere else than worry about selling a home.
🔥Bottom line: Rushing into buying a home is a recipe for a sloppy disaster sandwich. Taking the time to think things through will lessen those jitters and help you make the right decision. Expecting a new bundle of joy? Head over to this article for budgeting tips.
Do you have a case of homebuyer's remorse?
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