When I was young, I imagined my kids growing up in the same house, then their kids growing up knowing they always had gramas house to visit, then one day passing the house onto my children for their lives to prosper. Nowadays, things happen that a young person doesn't take into account when making those dreams. Marriage, career relocation, elderly parents, and so many more things can happen. Before you know it, you are 1,500 miles away from where you started and not ready to plant your roots into the soil.
When you get to a point that you are ready for homeownership, there is a process that can feel pretty intimidating at times. I have been trying to find the perfect time to settle in for about five years now but it always seems like something else pops up. To be completely honest, a mortgage will more than likely be less than what my rent is but there is that fear of biting off more than I can chew and losing all of it. Especially with the Covid crisis that has happened for the majority of 2020. Everything seems a little unexpected.
So my biggest concern (of many) is an affordable mortgage. Since we did wait longer to jump into the home buying market, we don't need as much house space as we would have needed 15 years ago. With only one child left in the home, we would only need a two-bedroom versus the 4-5 bedroom home we would have needed a few years ago. That's going to be a huge cost saver.
We still don't know exactly how much home we can afford. While we browse listings and check out the home prices, and cruise through endless virtual tours, we would like to think that if we stay in a certain range, we should be fine but, still not sure how much the payments would be. I came across a mortgage calculator that is the perfect tool.
Why I like this one so much is because of all of the information needed- I can put in. I can adjust it fully with specific information so I can get an exact idea of what to expect. There are no pop-ups or ads either. I don't have to worry about a realtor hitting my up to use the calculator, sign up for an email notification, or a list of lenders that I need to go with. Anyone that has done online searching for anything home buying related, you know what I'm talking about. Why I am even mentioning that is because we are still in the figuring stage. We're not ready to talk to anyone but each other about what our plans are. We aren't sure how long we should try to finance for and with the calculators on the Pigly site, we can go back and forth on prices, anywhere from 10-30 year FRM and other options.
So, now that we can see what the factors are and figure how much we can afford, we have been trying to see if we can really make it happen. Finances have been a little worrisome this year with all of the surprises 2020 has to offer. So, following economic trends can be a little scary but it's important to be informed on finances and how they might affect you long term.
Something you may want to take into consideration when looking for a home is if you are looking for a turn-key property or a fixer-upper. There are pros and cons to both. Check out the situations I have come up with to help you decide what will be the best option for you.
- If you are very busy with work and family, you may want to get a home that has no extra work at all. That would mean that the house is ready to be lived in as soon as you get the keys in your hands.
- If you have limited construction knowledge, you may want to stick to a home that has less work before moving in. Or a limited amount of work so you can live in the home while you are fixing up the home or small renovations like painting rooms to get to a color scheme you love or renovating a bathroom to suite your own personal needs.
- If you are a super pro at home repair (my sister and brother in law) you can take a fixer-upper of any kind and make it absolutely fabulous over time. They both work and are very busy with the family but they make home projecting seem like it's a reality tv show. I don't know how many times I have gone to their house twice in a week's time and it looks completely different.
I hope all of this helps you with your home buying adventure no matter what stage you are in. I have a feeling I will be in the dreaming stages for a while and that's okay. Making sure I am secure in my finances and certain with my purchases (short and long term) are very important.
Are you a homeowner yet? What was your biggest hurdle? Are you dreaming of homeownership? What is your number on must-have for the new place? I look forward to hearing from you.
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