It's no secret that when a person buys a house, they are entering into what is likely the largest financial transaction of their life. At the same time, they have the freedom, pride, and security that come with homeownership. But how do you know for sure when it's time to stop renting and start the homebuying process? Here are a few tips to help you answer that question for yourself.

Should You Rent or Buy a House?

1. Review Your Finances

If you're living from paycheck to paycheck and just covering rent, utilities, and other monthly bills, you may want to hold off on buying a house. Most first-time homebuyers choose to apply a down-payment of anywhere from five to 20 percent of a home's asking price. There are other costs beyond the down-payment, including inspections, homeowners insurance, lawyer's fees, and renovations. So, if you have a nest-egg saved up and feel confident in your ability to meet all the financial obligations of purchasing and maintaining a home, then it's time to start looking at residential real estate.

2. Think About Your Goals

While there's no hard and fast rule as to how long a person should stay in a home they purchase, many real estate agents suggest a five-year minimum. This allows you enough time to build up some equity in the property and maybe make a nice profit from the future sale of the home. Ask yourself how long you plan on staying in the area. Think about your job, its stability, and your satisfaction working there. Figure in your plans for marriage or children. If you plan to put down roots where you currently are, stop renting and start looking to buy.

3. Consider the Responsibilities

Homeowners have responsibilities that renters do not. And these responsibilities not only cost money, but they can require time and commitment. Tasks like lawn care and landscaping, snow removal, plumbing and HVAC repairs, and appliance upgrades are just a few of the homeowner’s duties. If you're sure that you have the time and resources to dedicate to these tasks, proceed with the home buying process.

Once you've decided to buy a house, Alex Weston Real Estate is here to help. Serving the Doña Ana County, NM, region, this Realtor® offers a large selection of residential and commercial real estate. This real estate agency will ensure you find the perfect property for your needs and budget, offering professional support and guidance at every step. Call (505) 717-0549 to learn more about current listings.