Putting in the Work, Time, and Dedication to See the Results of Home Ownership
Understand the Mindset: Advantages and Challenges of Owning a Home
We all know owning a home is the ultimate goal, but the hard truth is nothing comes without some work. The mindset of home ownership is an understanding of the financial responsibility and the commitment to discipline. When you make the choice to become stronger, you are committing to setting your mindset on growth, and keeping the disciplines in place that will get you to your ultimate goal. Home ownership, like building your own personal strength, is a choice to become financially strong and you will need to embrace a wealth-building mindset. One of the challenges that accompany the mindset of owning a home is the effect it will have on your other financial obligations and your overall budget. Owning your home can come with great advantages like tax benefits and growth of your net worth, but you will want to be sure that your other finances are in good shape before going all in.
Set Your Owning Goal: Where the Work Begins
Setting a goal to own your home begins with putting in the work to determine what you can afford. Home buying is a detailed and extensive process, and you will have to take time to review your overall finances and make sure that you are financially ready. The work begins with setting a home budget you can afford, researching options for financing, and having conversations with lenders to get prequalified. Similar to setting healthy boundaries when it comes to weight lifting to build strength, you shouldn’t extend the budget for your home beyond what you are financially capable and prepared for. As you are researching the areas that interest you, remember that you need to stay within a home budget that includes moving expenses, the down payment, home inspection, insurance, utilities, property taxes and closing costs.
Coachable Moments: Homebuying for the Right Financial Benefits
Home buying can be a great long-term investment that brings you financial strength, but there are factors to consider before buying, and you will need to review the financial benefits before signing on the dotted line. Home is where the heart is, but it is also likely to be your largest financial asset. It’s important that you find a mortgage lender that will understand your needs and will work with you to find the best loan for your circumstances and budget. In the meantime, review the tax benefits of owning your home, and make sure that you are honest with yourself about your financial situation. Think of your real estate agent or broker as a wealth-building coach as they are experts when it comes to the buying process, know the value of the properties you are considering, and they have a firm understanding of your financial limitations.
Desire and Dedication: Property that can Raise your Net Worth
Buying a home requires desire, dedication, and financial responsibility. When you are officially a homeowner, you own a property that can raise your net worth. Many homeowners look at their property as a financial asset as well as a place to live, but it may not be the right time or market for you. It is true that for every house payment you make, you as a homeowner are paying down the principal payment, building on your net worth and increasing equity in your home. However, you will need to consider the economic climate you are in, and carefully examine the other monthly costs that come with owning, such as maintenance, repairs, upgrades or renovations, and taxes.
The Homebuying Journey: Results take Time
Like the ultimate goal of growing stronger, the home-buying journey takes work, desire, dedication, time and patience to find the best fit for you and see the results. It is important to have the mindset of financial responsibility and discipline, as well as certainty that your finances are in good shape. While there are exciting advantages of home ownership such as tax benefits and growing your net worth, there are also challenges and factors to consider before signing on the dotted line. The work begins with setting a budget that doesn’t extend beyond your financial capabilities, and it is a choice that should be made for the right financial reasons. Owning a home may meet a lot of your personal needs, but look for the coachable moments from your lender, real estate agent or broker that will help you find the right home for your budget and strengthen your home buying decision. Home is where the heart is, and it can raise your net worth, but you will need to set healthy boundaries in order to grow stronger and make the right financial decision.