Chances are, if you’re trying to decide between renting a home or buying a home in San Diego, you’ve made your fair share of pro and con lists. There are a lot of things to consider when it comes to making this kind of a financial decision about your future. After all, home ownership is a serious commitment.

Here’s a checklist of some additional considerations for helping you to decide whether or not you are ready to purchase a home.

Figure out the cost of owning a home beyond the mortgage payment. After all, the cost of the mortgage is just the beginning of how much home ownership can cost. You’ll also have to factor in things like┬ámaintenance┬ácosts and the cost of homeowner’s insurance.

Calculate how much the tax break is going to save you.

Practice, practice, practice. It’s often a good idea to attempt a “test run.” Try to save the cost of your monthly mortgage payment for six months. The way that you do this is buy calculating what the cost of buying a home in your price range will be for you, monthly. Include things like maintenance costs and homeowner’s insurance. Once you have that figure, subtract your current monthly rent from that total. Deposit that difference into a savings account for six months, at the beginning of every month.

If it’s too difficult to give up that extra money, it could be a sign that you are not in the financial position to purchase a home yet.

What about your credit score? If your credit report has issues and your FICO score is low, you’re not ready to buy a home. The higher your FICO score, the lower your interest rate on your home loan will be.

Additional expenses. Buying a home comes with all sorts of additional expenses. In addition to the aforementioned cost of things like homeowner’s insurance and the cost of maintaining a home and yard, you also need to factor in the cost of furniture. If you’re going from a small apartment to a large home, you’re going to have a lot of extra space and will need to buy things like furniture to fill it.

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This is filed under Rent Vs Buy.


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