The chances are that whenever you think of the American Dream, one of the first things that come to mind is becoming a homeowner. Indeed, being a homeowner comes with many privileges and is one of the most important milestones in a person’s life. In fact, many people begin dreaming of owning their own home from the time they realize that owning their own home means making their own rules. However, we spend so much time imagining what it would be like to live in our dream home that we often gloss over the not-so-desirable parts of homeownership.
If you think owning a home is one big picnic, you’re in for a rude awakening. Being a homeowner is a great privilege, and as the saying goes, “With great privilege comes great responsibility.” So, do you think you’re ready for all the responsibilities that homeowners face? Continue reading to learn about some of the pros and cons of homeownership.
Con: You’re responsible for home repairs.
It’s easy to spot many of the advantages of owning a home, which is why we’ve decided to begin with the cons and start you off with a dose of reality. One of the things you must consider when moving into a home of your own is that you’re responsible for home repairs.
When you live in an apartment or rental property, you can call the landlord or rental office when your refrigerator or dishwasher breaks down. However, when you’re a homeowner, it’s up to you to find the best appliance repair in Honolulu, HI, when your appliances start acting up, and they will.
Pro: You can customize your home to your liking.
One of the great things about being a homeowner is you can customize your home to suit your taste. When you live in an apartment, you’re stuck with the bathtub that came with the apartment. However, as a homeowner, if you decide you want a double-slipper clawfoot tub, all you have to do is find the Los Angeles replacement tub company with the bathtub designs and prices that fit your family’s needs.
Con: You must save for a sizable down payment.
Most home buyers have to make a down payment of at least 6 percent of their loan amount. When you consider that most homes go for over $200,000, that’s a sizable downpayment. Many experts say you should save the amount you expect to pay in monthly mortgage payments for a year before applying for a home loan to ensure you have enough for a down payment. Plus, the larger your down payment is, the lower your mortgage payments and interest rate will be.
Pro: Paying your mortgage builds your credit.
One of the benefits of being a homeowner is that making your monthly mortgage payments on time is great for your credit score. Indeed, you should work on your credit before buying a home to improve your loan eligibility. But once you begin making timely mortgage payments, your score should continue to climb. Becoming a responsible homeowner is one of the best things you can do for your credit score.
As you can see, there are a lot of pros and cons to consider before becoming a homeowner. If you thought it was all sunshine and rainbows, you’re wrong, but becoming a homeowner is still one of the most fulfilling things you can do in life. The keys to making being a homeowner easier are to begin saving and financial planning well in advance of the time you plan to purchase a home, build your credit, and save for emergencies. Being a homeowner is far from easy, but it’s well worth the investment and all that comes with it.