If you’re considering buying your first home, it’s important to be aware that there are several ways that buying and owning a home is significantly different than renting. While homeownership is an amazing, empowering experience, if you don’t know what to expect, it can be challenging and stressful. We want you to buy a home with confidence and love owning your own place, so we’re sharing what you need to know to make the transition from renting to buying as smooth as possible.
Buying a Home is a Process
When it comes to renting, it’s a fairly straightforward process – you find an apartment in an area you like, fill out an application and wait a few days to hear back. Then you pay the deposits, sign the paperwork, and move in on the agreed-upon date.
Buying a home is a significantly slower process with many more steps involved. First, it’s important to get pre-approved for a mortgage and gather all the paperwork your mortgage banker will need, including proof of income and tax returns. Knowing your pre-approval amount gives you a better idea of your budget.
From there, you’ll want to connect with an experienced real estate agent to guide you through the process and help you find the perfect home. Once you find a home you love that’s within your budget, your agent will help you draw up an offer. Depending on whether the offer is accepted, several more steps are required, including a home inspection, appraisal, and mortgage approval. Fortunately, when you stay in touch with your real estate agent and mortgage banker, they’ll walk you through every step so you’ll know exactly what to expect.
Owning a Home Comes with Unexpected Costs
When you rent an apartment, moving in requires the first month’s rent and deposits as well as deposits to get utilities connected, and your monthly housing costs are primarily utilities and rent.
Owning a home has very different costs associated. In addition to your mortgage, you have to consider costs that may include:
- Property taxes
- HOA fees
- Mortgage insurance
- Higher utilities
- Buying furniture and home maintenance equipment, like a lawn mower.
- Costs associated with buying a home, including the down payment, paying for the appraisal and inspection, and closing costs.
Also, it’s important to have an emergency fund when owning a home. Again, when you’re renting an apartment, you’re paying for the convenience of having your landlord take care of maintenance and repairs like a leaking faucet or a broken water heater. Homeownership means that the maintenance and repairs fall to you to pay for, so it’s incredibly important to keep a maintenance fund or emergency fund available.
The good news is that with each payment and update you make in your home, you’re paying off your home and building equity, ensuring that your investment will grow over time.
Owning a Home Provides Stability and Freedom
On the surface, renting allows a great deal of freedom. You can renew your lease if you like your apartment or you can put in your notice that you won’t be renewing and move to a new location with relative ease. But renting may not offer the long-term stability that home ownership does where you can put down roots and become a part of your community.
What you may not realize is that homeownership comes with a different kind of freedom. You’re able to decorate your home how you choose make exciting updates to the architectural elements of your home, or simply transform your landscaping to suit your style. Owning a home is more about having a place to live, it’s about creating a place where you can make memories and build your investment to help you achieve financial security.
Speak with a Real Estate Agent in Minneapolis Today
Whether you think it’s best to rent an apartment or you’re ready to branch out and buy your first home, we can help you get started. Stutsman Realty, Inc. has beautiful apartments for rent in Uptown Minneapolis, and we also connect buyers to their dream homes every day. To learn more about homes for sale in Minneapolis, reach out to us today at 952-927-4144 or fill out the contact form below to get started.
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