As the younger millennials and Gen X’s come of age and start looking to settle down, they often wonder how they can make the change from renting to buying. The reasons they want to make the switch vary from wanting to start a family to finally gaining freedom from a landlord and being able to put a stop to the constant struggle of rising rental costs and frequent moving. Owning a property is a significant investment, with a lot of work leading up to becoming a new homeowner or a first-time homeowner.  

Decide What the Right Option is For You 

Do you plan on moving again in less than the next two years? Are you responsible when it comes to maintenance and yard work? Do you like the area you currently live in, and can you afford to stay in that neighborhood? When you buy a home, it is vastly different from renting a townhouse, renting an apartment, or renting another type of property. You are tied to the property you purchase for four to five years if you are looking to make a good return on your investment.  

Weigh the Pros and Cons 

Like every decision in life, there are pros and cons to owning a home or renting an apartment. Renting an apartment comes with many pros – consider the following. 

• There is no long term commitment to stay at the property 
• Not as much money is involved over time 
• No repairs or maintenance  

While that does sound appealing, there are also cons to living in an apartment for years on end.  

• You lack a sense of permanence and stability 
• Rent costs can change from year to year 
• You can’t make it your own and are stuck with what is already there 
• There are rules you have to follow, such as pet limitations 

When owning a home, you have more freedoms, but with more privileges come more responsibility which plays into the cons of owning a home. 

• Costly repairs and maintenance fees 
• Unable to just up and leave  

The pros, however, outweigh the cons when it comes to owning a home. 

• The added sense of stability in your life 
• Suitable for raising and growing your family 

• Allows you to put down roots in a community that you love 
• It provides you with the ability to make a space truly your own 

How to Start the Transition 

After deciding that homeownership is for you and your family, you need to start preparing for the home buying process. 

Knowing and improving Your Credit Score 

The first step is to request a copy of your credit report from any of the three major credit bureaus so you can do a credit check. Review your report to confirm that all of the information is correct. According to FICO, an exceptional credit score is between 800-850, a very good score is between 740-799, a good score is 670-739, a fair score is 580-669, and a poor score is anywhere between 300-579. You can also meet with a credit repair specialist who will work with you, help with credit restoration, and give you helpful tips to fix your credit score if it needs work or if you have general questions on how you can do better.  

Finding an Agent 

According to realtor.com, more than half of all recent homebuyers first found their home through the internet on a listings site like realtor.com®, nearly all (9 in 10) purchased their home through a real estate agent. Finding an agent that you connect with is a big deal. You will be working with this agent for months and want to make sure they understand you and your needs. Oftentimes, interviewing your top choices and picking one agent is the best option. Building that solid connection makes it easier for your agent to find your perfect home faster! 

Connecting with a Lender 

After choosing an agent, selecting a lender is the next most vital step you can make. The biggest lender isn’t always the best option when it comes to lending. Customer service, locality, and experience matter as well. Speak with your agent to see if there is a particular local lender that they love to work with, who closes on time, is friendly, and has excellent reviews.  

From Renting to Homeownership in Texas 

Renting in Texas can be difficult, but so can start searching for a new home. With Beyond 404 Realty, Anthoney Hanks helps families and individuals in the Dallas-Fort Worth community find their dream home. Anthony specializes in working with first-time homebuyers in Texas and those looking to purchase investment properties in Texas. Anthoney will teach you how to become a homeowner, stop renting, and start buying! Visit www.beyond404realty.com for more information or visit our YouTube page for short videos on starting the home buying process at https://www.youtube.com/channel/UCmzTlxpC6-nJWXsphoqhPZw We can’t wait to work with you.