Buying a home for your family is a very exciting time. It is important that you consider all factors before making the transition though.
When hubby and I purchased the home that we currently live in, we fully expected to move eventually. It’s not a large enough home, nor is it in our ideal area. We currently live in the suburbs in a nice area but would rather not see our neighbors. What I mean is that once our priorities are taken care of (paying off debt, minus mortgage) we plan on moving further out towards the ‘country’.
Since we have considered everything we realize that this move won’t be feasible for a few years. These are things you need to consider when thinking about moving your family.
Have You Considered all Expenses?
For us, we want to have our non-mortgage debt paid off before we move again. By the time this happens we will be at max capacity of this home (nearing this point now) but have committed to paying things off before moving. This frees up money for other expenses such as larger down payment, legal fees involved with move, potential fees if we decide to build, and professional movers. We have moved twice with the help and kindness of friends and family, but there’s no way we could, or would do it again. Since our plan is to make our next move, our last move, we will be hiring professionals to do it for us. An expense but so worth it.
Consider ALL expenses before deciding to move. In our case when we move out of our current area, a second car will be a must, an added expense we can’t handle right now even with the decrease in public transit use.
Is Renting a More Viable Option?
You have to still consider if renting is a more viable option for you and your family. Home ownership is not for everyone. As long as you have a safe roof over your family’s head that’s all that matters. Some argue that rent is throwing money away but if renting means your able to live the life you want, debt-free, without property ownership than who cares?! For some, tying permanent roots down is daunting, they move often or like the idea of a swanky apartment with more amenities than a starter home. If home maintenance doesn’t interest you than don’t ever be pressured to buy.
Don’t Buy More Than You Need!
This is a tricky one. Especially if you’ve gone through the pre-approval process. You see how much the bank thinks you can afford and you’re expectations of home get out of control. Try and keep a modest list of wants and needs and be willing to make compromises if needed.
Beef Up Your Emergency Fund, Add New Budget Categories
If this home purchase will be your first, it’s time that you establish or beef up an emergency fund. Homeownership can be a bumpy ride and stuff can go wrong. Mother nature can be a real pain in the butt and hit you when you least expect it – whether that’s due to a sudden storm or for unexpected damages that necessitate a Crawl Space Remediation, make sure you have at least enough in your emergency fund to cover any insurance deductibles as well as minor home repairs.
You also need to set aside a small amount of money to new expenses such as insurance premiums and regular home maintenance repairs. If this is something that will send your budget over the edge, probably an indication that you’re not quite ready for homeownership.
Homeownership can be an amazingly fun experience but it can also be very stressful. Make sure you have everything figured out before deciding to embark on this venture, especially if there’s a family involved that you’re required to protect!
What else do you need to be ready for your family home?
Catherine is a first time momma to a rambunctious toddler. When she isn’t soaking up all that motherhood has to offer, you can find her blogging over at Plunged in Debt where she chronicles her and her husbands journey out of debt. You can also follow her on Twitter.
