Homeownership | Buying a Home

Is Homeownership Right for You?

Do you enjoy moving often?
Do you prefer using your savings for such things as vacations, retirement or starting your own business?
Do you enjoy not having to worry about regular maintenance and repairs?

If you answered yes to any of these questions, you may not be ready to own a home yet. While you probably have a lot of good reasons for wanting to buy a home, you also have to consider your reasons for not wanting to.

Remember that buying a home is one of the biggest emotional and financial decisions you'll ever make, so prepare yourself to make a knowledgeable decision.

Although buying a home almost always seems like a great idea, it is important to understand what homeownership involves. Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you're ready.

When most of us consider becoming homeowners, we immediately think of how wonderful it will be. It is true that there are a lot of good reasons for wanting to buy a home. Here are some of the main advantages of owning a home:

Financial Security. If housing prices rise, your home can provide you with some financial security due to capital appreciation.
Flexibility. You can decorate or renovate your home to meet your own family's personal tastes and needs.
Stability. Having a place of your own.

Although it is nice to think about the positive aspects of owning a home, it is important to consider the downsides as well. Here are some of the main disadvantages of owning a home:

Financial Stress. Coming up with the down payment , meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances.
Maintenance . Keeping your home in good shape requires time and money.
Higher Costs. You may pay more each month for housing than you did as a renter. There are also extra costs for maintenance and property taxes .
More Responsibility . You alone are responsible for payments, repairs and maintenance.

Now that you have an idea of what to expect, the worksheet below will help you determine if homeownership is right for you.

Advantages of Renting	Disadvantages of Renting

Advantages of Buying	Disadvantages of Buying

If you answer YES to the questions below, check the column to the right of the question.		YES
1	Based on your answers above, does buying a home seem to have the most compelling advantages for you?
2	Are you fairly certain you will not move to another community in the near future?
3	Do you want to stay in the community where you are currently living?
4	Do you expect your income to remain the same or increase in the future?
5	Can you handle the financial responsibility of a mortgage?
6	Do you want to take care of the repairs and improvements on a home?
7	Based on this analysis, do you think buying a home is the best choice for you?

Introduction

Is Homeownership Right For You?

Are You Financially Ready?

How Much Will It Really Cost?

What Should You Buy?

What Professionals Should You Call On?

How Can You Find The Right Home?

Ready To Buy?

The Final Steps


	Down payment: The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage. It generally ranges from 5% to 25% of the purchase price but can be more.


	Mortgage payment: A regularly scheduled payment that is often blended to include both principal and interest.


	Property taxes: Taxes charged by the municipality where the home is located based on the value of the home.