From Renting to Home Ownership – Tips For Making the Plunge

This post was sponsored, and paid for, by SunTrust. All opinions are my own.

Picture it’s 2006. Josh and I are newly married and doe eyed to the real world. We’ve moved out on our own for the first time and we’ve found us the perfect little one bedroom, one bath apartment. All is grand for about 8 months. It didn’t take us very long to realize that one bedroom apartment wasn’t so spacious after all. The two closets we did have were packed to the ceiling. Our tiny living room held all of four guests at a time and having to walk through our bedroom to access the bathroom was less than desirable.

Ultimately knowing that our rent payment was essentially going down the drain every month wasn’t exactly the investment for us. It had only been 8 months and we already knew that we didn’t love the rent life. Purchasing your first home can bring on some serious anxiety. Walking through the steps can be a little scary, so I absolutely love that Suntrust is making it a little easier for first time home buyers with this home ownership hub on OnUp.com! I wish this resource had been around when we made the dive for home ownership. If you’re unsure where to start the process and what to be aware of along the way they have all the information you need to make the right decision for you and your family. We learned so much through our home buying experiences over the last twelve years and I wanted to take some time to today to share a few of my tips with you. I hope that it’ll take your stress level down a notch and will give you some things to remember while shopping.

Know What You Can Afford

Get pre-qualified for a loan before you start house hunting. The last thing you want to do is get attached to a home to later realize you really can’t afford it. Josh and I always tell friends who are shopping to stay under your top budget. In home ownership there’s always going to be repairs that pop up and possibly income changes in your future. Remember to add in the cost of escrow (taxes & insurance) when calculating your budget. SunTrust recommends keeping your mortgage payment within 29% of your monthly gross income. Consider these things before you start shopping. It’s always better to give yourself a little wiggle room. Being house poor is never glamourous or fun!

 

Don’t Skip the Home Inspection

This may seem like a given, but in fact home inspections are not a requirement everywhere. Although it can be an added expense, $200 – $2000 depending on where you’re located, says Brendon DeSimone, a real estate expert and author of “Next Generation Real Estate: New Rules for Smarter Home Buying & Faster Selling.” It shouldn’t be something you even consider going without. You want to know exactly what you’re walking into before you buy. Major issues can easily be looked over if you don’t know what you’re looking for. Foundation problems, water damage and termites can come with a huge repair cost. A trained inspector will give you a complete run down of any issues so that you can make the best decision for you and your finances.

 

Have an Emergency Fund Ready

I can’t tell you how many people we know, ourselves included, who have purchased a home and less than a year later something big needed repair. Whether it’s a hot water heater, HVAC unit or leaky toilet, things happen and having an emergency fund of at least $1000 will be your best friend. Setting a little aside each month adds up and can keep you from going into heavy debt when a repair presents itself.

 

Consider an Older Home or Fixer Upper

When I say fixer upper I don’t necessarily mean a home that’s one step from caving in, but one that you can put your own stamp on. Many young couples look at brand new homes and want something that’s turn key ready. That’s fine if you can afford it, but many can’t and that’s okay. In our experience the great thing about buying a an older home is they tend to be built a little better with more quality features. So many outdated things in older homes are cosmetic. Updating walls and trim and cabinetry with paint is an easy and affordable fix. Light fixtures and flooring are also things that can be swapped out. Keep in mind that so many of these things can be changed inexpensively.

Take our family room and master bedroom for example in our current fixer upper. The previous owners foreclosed and left most of their belongings behind. It can be difficult to picture your belongings working in a space like that, but both rooms were really only in the need of a deep cleaning and some basic updates.

Family room’s before –

 

Our family room today –

 

We cleared the room, deep cleaned and gave all the trim and walls a fresh coat of paint. We also sanded and repainted the fireplace mantel for a pop of color. Just freshening up the space with paint and our furniture completely changed the look of the room and made it our own!

 

Our master bedroom before –

Our master bedroom was a little more work . . . we removed the carpet and installed new wood flooring. We removed the wallpaper and painted the trim and walls. We replaced the old, broken ceiling fan with an updated one. This room renovation required a larger budget than the previous room but still within the possibility for us as first time home buyers.

 

Our master bedroom today –

 

 

I know that taking the leap from renting to buying your first home can seem so daunting but I promise it doesn’t have to be! SunTrust has made it so much easier to start the process and to know each step to take with confidence. The home ownership resources on onUp.com are such a wealth of knowledge and I couldn’t recommend their articles and tips more! If you’re even entertaining the thought of ditching your rental, take the time and learn the process. They’ve made it easy with step by step advice. Home ownership was one of the best decisions we ever made. We know that our payment each month is being invested into a property that is our own. At the end of the day our home is ours and you just can’t beat that feeling. I wish you good luck on your home journey and happy house hunting!

 

 

This post was sponsored, and paid for, by SunTrust. All opinions are my own.