As Realtors® we want you to find the home you love; however, we also want it to be a home you can afford. If you’re a first-time home buyer, you may be considering a mortgage that equals the same amount as you pay in rent. But there are other factors beyond mortgage to remember that come along with homeownership and must be considered. Here are five things to think about and discuss before determining how much home you can afford as you transition from renting to owning.
1. Homes Need Maintenance
If you look at your rent and think, “I’m wasting so much money. I could have a home for the same amount that I pay in rent,” remember homes also require maintenance which is paid by the homeowner. If your budget after paying your mortgage, taxes and insurance wouldn’t leave money for upkeep of landscaping, lawn care, pest control, appliance repair, and savings for replacements as appliances break, you may want to consider a lower-priced home to better fit within your budget.
2. Insurance
In Florida especially, homeowner’s insurance may be a substantial portion of your monthly budget based on where you live. Companies insuring homes in Florida factor in hurricanes, wind damage, and sink holes in addition to the other risk factors the rest of the country has. Depending on where you choose to buy a home, you may also need separate flood insurance. For many, homeowners insurance payments are made as part of their mortgage payment, but this is not always something buyers factor in when looking at homes and evaluating the estimated payment.
3. Homeowners Association
If you live in a planned community, you will likely have homeowner association (HOA) dues. Although these are mostly a fixed amount per year, they can fluctuate. You’ll also need to know if you may be subject to a special assessment from time to time. These can include hundreds or even thousands of dollars to fix roads or the pool in the event of a need for repairs.
4. Time
As a first-time home buyer, it's important to consider the time homeownership can require. While your landlord or apartment complex may handle maintenance like changing air filters, weeding, and trimming landscaping now, these things become your responsibility upon homeownership. If you’re already pressed for time, you may need to allocate additional funds to pay someone to take care of routine maintenance for you.
5. Consider a Condo, Villa or Townhome
Sometimes the best option for a first-time homebuyer is a community where some things are handled for you, like exterior maintenance and groundskeeping. Condos, villas and townhomes include maintenance and some elements of insurance in the HOA dues which takes some of the workload off you. You’ll still need to remain vigilant regarding maintenance inside your property, but this may be a good first step into homeownership.
If you’re ready to buy a home, villa, townhome or condo, the Realtors® at Future Home Realty can help. Even if you are not ready at this exact moment but want to take the steps toward being ready in the months ahead, we can help you.
Whether you’re a first-time homebuyer or looking to sell a home and buy a new one, Jason Duraj and his team will help you find the perfect property that fits your budget and lifestyle. Call us today at (813) 992-7771 for your confidential consultation.
