One of the biggest milestones in a person’s life is buying their first home. It is a major decision that will affect your daily life. Whether that is a positive or a negative effect will depend on your financial situation and lifestyle. So, what are the things you need to consider when buying your first home?
The immediate concerns that you will most likely have will be related to finance. Fortunately, as long as you have all the prerequisites, you can apply for a VA loan. Unlike conventional loans, most veterans who apply for VA loans do get approved. The statistics show that over 70% of VA loan applications are approved.
The Pros and Cons of Buying Your First Home
While buying your first home involves high upfront costs, several long-term benefits aren’t always obvious. The biggest one is that your house is an appreciating investment. Even though this is largely based on the housing market trends, house prices do tend to increase over time, which is a great investment for you. Furthermore, if you are using a fixed-rate VA loan, then the homeownership costs are relatively stable. Renting is less consistent as the monthly rent can change every time you move or renew the lease, whereas the monthly payments on your mortgage are more or less the same. Another advantage is that having your own home allows you to build equity. This refers to the portion of your house that belongs to you and is calculated by subtracting your mortgage value from the property’s market value. In other words, you will receive that home equity as cash if you do decide to sell your house.
That said, buying a home is a major commitment to be analyzed. Acquiring a house costs big money, even in credit, which is why you need to be certain that your finances are intact for such a commitment. Furthermore, just because you have purchased your house does not mean that the high costs stop there. You need to allocate money for repairs and maintenance. As a renter, you are usually less concerned about the upkeep of the place, but when you are the homeowner, it is likely that you will want some renovations done. Another thing to consider is that you will have less flexibility as a homeowner when moving for work or for some other reason. It is no longer as easy or as quick to move if you own the house. Thus, these are the times when it can be considered a burden to own a home.
Considering all that, it is obvious that such a decision is not to be taken lightly. The important thing is that you weigh in all the pros and cons before finalizing your decision. If the good far outweighs the bad, then you are ready to be a homeowner. Buying your first home is an exciting chapter in anyone’s life.