Congratulations! You’ve made the huge jump to investing into a place for longer than a 12-month lease. Instead of wasting money on rent, you’re now building equity each month. It’s hard to find anyone who doesn’t think becoming a homeowner is worth the trouble. This Charleston real estate guide will help you with your transition to your new home.
How to Transition into Becoming a Charleston Real Estate Homeowner
There’s a lot more into transitioning from a renter to homeowner than most people think. You should factor in closing and moving costs into your budget. If an appliance malfunctions, you must fix or repair it instead of the maintenance guys. You can’t forget about insurance as this bill may be higher than your renter’s insurance. Here is our Charleston real estate guide to homeownership after renting.
- There Will Be More Upfront Costs
Gone are the days where all you’ll have to pay upfront is the security deposit and first month’s rent. When buying a house, a down payment is usually required. This ranges from 3% to 20% or higher depending on your credit rating and mortgage program. Plus, you must pay closing costs on the new home.
- There are More Payments to Make Besides the Mortgage
It’s no secret that making a mortgage payment can be cheaper than paying rent. But you’ll also need home insurance for protection. When renting, you may have had the option to decline renter’s insurance. It’s an absolute must to have homeowner’s insurance. Don’t forget that you’ll want to stash a little money away to pay for property taxes. This is usually based on the percentage of the assessed value of the land and structures on it.
- You Must Have Emergency Funds Set Aside
An emergency fund can help you when something major happens. For instance, it can help you if you suffer a job loss or have major medical bills. It can also help you in the event of an appliance malfunction. It’s best to set aside 3-6 months as a bare minimum. Plus, it’s needs to be enough to pay the mortgage, food, utilities and other expenses.
- You’re in Charge of Maintenance
Instead of relying on a maintenance crew to handle repairs or mow the lawn, you’re in charge of it. You’ll need to factor in a maintenance budget to handle more than buying lightbulbs and AC filters. Water heaters, dishwashers, and refrigerators all tend to break down with old age. They might have to be fixed or replaced, especially if it’s an older home.
- Get Used to Having Fewer New Neighbors
One fabulous change to make is adjusting to living around the same people for years. Apartment renters don’t have to hear endless stomping on the other side of the ceiling. House renters don’t have to suffer disapproving looks from other nearby homeowners. Instead, you’ll probably be seeing your neighbors quite frequently for a long time.
Let Us Be Your Charleston Real Estate Guide for New Homes
Making the transition from renting to owning can seem intimidating for some people. However, knowing what to expect is the key to undergoing a less stressful event. It pays to have an experienced team as your Charleston real estate guide. We can help you if you’re looking to buy a home. Contact us at (843) 628-3960 for more info about Charleston houses for sale today!