Tori Dunlap Suggests Asking Yourself These 3 Questions Before Buying a Home
- Buying a home is a huge decision that significantly impacts your finances.
- Money expert Tori Dunlap recently shared her experience of almost buying a home.
- She suggests asking yourself several questions to determine if homeownership is the right choice for you.
While it's great for some, homeownership isn't for everyone.
Tori Dunlap is a money expert who shares advice online. Her podcast, Financial Feminist, features conversations about important financial topics. She recently shared her experience of almost buying a house and why she's happy she continued being a renter.
Buying a home is a big decision
Dunalp is doing very well financially. But just because someone makes good money and has savings doesn't always mean that becoming a homeowner is the best choice. It's a life-changing experience, and it's not for everyone.
In episode 40 of her podcast, Dunlap shares the biggest financial mistake that she almost made. She discusses how she felt pressured to buy property because she could technically afford to do so. But as she went through the process, she realized that it wasn't the best move for her goals -- and she ended up backing out at the last minute.
Are you considering buying a home but aren't sure if it's the right move for you? Dunlap has some questions that may help you make the right decision for your needs.
Question 1: Why are you making this decision?
Dunlap notes that the most critical question is why you're considering buying property. You want to do it for the right reasons.
If you're doing it because all your friends own property or you think buying any home is a good investment, those probably aren't the best reasons. A good reason might be that you plan to live in the area for a long time and want to settle down and stay in one place long term.
Question 2: Do you have a financial plan to own a home?
The next thing you want to do is figure out if you have a financial plan for how to buy a home and if you can afford to do so. It's best to seriously consider how much of a down payment you'll need to make and how you plan to pay for the down payment and closing costs.
Without proper planning, you could put yourself in a difficult financial situation. The last thing you want is to be struggling to pay your bills and feeling regret for buying a home.
Question 3: Can you afford other home costs beyond the mortgage?
Many expenses come with buying a home, so it's essential to consider the costs beyond a mortgage. You should consider costs like property taxes, private mortgage insurance fees, HOA fees, and home and yard maintenance expenses. Figure out how you will pay for these homeownership costs and whether they fit your budget. If you don't have extra money in your savings account beyond what you plan to use for the down payment and closing costs, it may not be time to buy yet.
Buying a home is a good decision for many people -- but it's not for everyone. Before buying property, ensure it works for your budget and lifestyle goals. If you enjoy renting and it works well for you, that's okay. There is no rule that says you need to buy property. Don't feel pressured to buy because of your age or because it feels like it has to be the next step in your life. Your path is yours to follow.
If you are thinking of buying a home or want to learn more about the process, review our list of best mortgage lenders.
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