Buying a home is one of the most important milestones in a young adults life. Homeownership is something a lot of people look forward to as they get older, but it’s a complicated process for sure!
Buying a home isn’t like buying a new pair of shoes or looking for an apartment, it’s a whole different ball game.
Here are some FAQs asked by prospective homeowners:
Should I buy what I need now or what I need in 10 years?
When buying a home, you should consider what your needs will be a few years down the line. While you may think that you shouldn’t drop the extra money on a larger house with bigger rooms if it’s just you or a partner or if you have a small family, you should think about what your goals are ten years from now!
If you’re looking to grow your family or try to work remotely, it may be a good idea to look for a home with more bedrooms or office space. Maybe you’ll want to search in a different area depending on what the school systems are like, or you’ll want a spot with a big backyard.
Write down what you want your longterm goals to be for your personal and professional life and look for a home that suits these future needs.
When I buy a home with my significant other, what should I expect?
When you are looking to buy a home with someone you’re dating but not married to you need to make sure you have an exit plan. When you’re married to a person, the legality of who gets the house or how assets are split is much more straight forward in the event of a divorce.
If you aren’t married things can be much more complicated. In either case, you should sit down with a lawyer and make sure you have a plan for what happens if your relationship doesn’t last.
Is it okay to buy a house if I still have student loans?
Student loans are something that plagues a ton of Americans into their 30s and 40s. You may find that you want to buy a home before you’ve completely paid off your loans.
But every case is different. I highly recommend sitting down with an accountant or a finance specialist to discuss if buying a home is financially feasible for you.
You have to keep in mind that you’ll be adding on a monthly expense on top of your student loans and other bills. Make sure that you have enough financial runway (and income) to support buying a home and keeping up with your morgage and student loan payments.
What about the neighborhood?
While you may have found the perfect home in a less than an ideal neighborhood, you need to consider the surrounding area. You don’t want to live in an area with high crime or decreasing property value.
Look for areas that are already established. The home price may be higher, but you’ll thank yourself for investing in a good neighborhood.
That being said, keep an eye out for neighborhoods that are on the up-and-up. While these areas may not be perfect now, they may be in 5 years. Make sure to weigh your options though!
Should I even buy a house?
A lot of people feel the pressure to be homeowners by a certain age! But sometimes renting is a better option. Think about why you’re looking to buy a home. Are you looking because you’re ready? Or because you feel like you should be?