Renting to Owning in 5 Steps
A majority of renters in the U.S. hope to become homeowners one day. A popular strategy for moving from renting to owning is to buy a home in a community of townhomes in Prosper TX and other popular cities. Townhomes are often an easy transition for renters, since they’re low-maintenance and easy to care for. They can be an ideal permanent choice or a stepping-stone to a future single-family home.
If you think it’s time to stop renting and buy a home, here are 5 steps to make that move:
Make sure you’re ready
Owning a townhome is the easiest way to transition from renting to owning. However, it still carries responsibilities that you don’t have as a renter. It will be up to you to maintain anything not covered by HOA membership, including the appliances and systems inside your home. Having an emergency fund is especially important as a homeowner, since you’re responsible for costs that landlords typically cover in a rental.
Don’t compare apples to oranges
Comparing rent to a mortgage payment doesn’t give you the full picture of the cost of owning a home. Mortgage payments typically include your payment on the principal, interest, taxes and insurance. You may have other tax and insurance fees to pay separately. Don’t forget that as a homeowner, you’ll also have to pay monthly utility bills, which may be new for you if some or all utilities were included in your rent.
Prepare financially
Start saving for a down payment as soon as you know you want to buy a home. It’s great if you can put down 20% or more, but that’s not a requirement with today’s mortgages. There are many types of mortgages available, along with first-time homebuyer programs and builder incentives. Research ways to save money on your loan, and check builder websites for special offers on new homes. Meanwhile, work on improving your credit score by paying down debt, paying bills on time and maximizing your income.
Get pre-approved for a mortgage
Getting pre-approved is one of the best steps you can take to prepare for buying a home. The lender will review your financial information and other documents, then present a formal offer of the amount they’re willing to lend you to buy a home. This is a great advantage when you find a home you’d like to purchase. It saves you time in securing a mortgage and can help you get the home you want before someone else claims it.
Start home shopping
With your financial foundation in place, it’s time to start house-shopping in earnest. If you’re looking for a brand new single-family home or townhome, look for well-planned communities from quality builders. Buying a new home in a planned community has several benefits, from energy-efficient building technology to the latest home styles, on-site amenities and a low-maintenance lifestyle.
Townhome communities such as Dominion at Brookhollow in Prosper TX are ideal for first-time homebuyers. Dominion offers affordable paired townhomes with all the light and space of a single-family home. Front yard maintenance is handled for you, so you’ll have more time to enjoy the community walking and biking paths, green spaces, pond and clubhouse.
Call Landon Homes New Home Sales Manager Renee Patel at 214-619-3116 to see available homes in the Dominion at Brookhollow community of townhomes in Prosper TX.
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