Image by james.thompson via Flickr
Everyone’s goal in life is to own their own home. There is something about knowing that where you live is yours; you can paint the walls, remodel the kitchen, or add a patio. It’s up to you and no one can say no (as long as you have the right permits, that is!). But before you head down the road of home ownership, you’ll want to consider one question: Can you afford it?
Cost of Monthly Mortgage
One of the key ingredients to whether you can afford a home is what the cost would be for the mortgage. If what you’re paying in rent is less than the mortgage, then it’s likely that you won’t be able to afford the mortgage. Even if the cost of the mortgage is the same, you still might not be able to afford it. Many who rent don’t realize all of the additional costs of owning a home.
For example, you’ll likely be paying more for utilities. Many rentals only charge for gas and electric, but when you own, you also pay for garbage, sewer, and water. Also, if the home is larger than your rental or doesn’t have adequate insulation, you may be paying more for gas and electric as well.
Size of Home
The next thing to consider is whether you can afford the size of home you’re looking for. When you’re renting, it’s easy to have a home that is barely big enough for your needs, but when you buy, you’ll want to stay put for awhile, so you’ll want to have room for growth for when you have more kids.