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Apartment vs House

At some point we’ve all thought about our dream house. Or maybe it’s a dream apartment. You may have thought about the design style, the colors you’d pick, or the yard you’d like to have. But how much do you know about what it takes to buy a house or commit to a long-term lease on an apartment? Let’s break down a few things to make sure you’re prepared for what goes into choosing your home.

House Hunting

For some, finding a house is the ultimate goal. It’s what they have been saving for and are excited to take that leap forward. One of the best things about owning a house is you’re making an investment instead of spending money on something you’ll never own. You can decide what color to paint any wall, and you’re under any remodeling restrictions. It’s all you!

But before you start house hunting, it's important to consider the current state of the market. Right now, in many markets, houses are selling well above their value because there isn’t a lot of inventory available. This isn’t good — particularly for first-time home buyers — because you’re going to pay more for a house than maybe you had planned.

Then, once you get into the house, you’re responsible for any maintenance. And, yes, these issues will happen — usually when you’re not prepared. It's important to remember this is part of being a homeowner.

If you’re still not daunted after knowing all this, here are some steps to take when deciding to make the leap into homeownership:

• Determine your budget: What can you afford? You don’t want to be “house poor,” buying a home at the maximum loan approval limit and then living paycheck to paycheck to cover your mortgage and other costs of owning a home. This makes it difficult to save for emergencies.
• Find a lender: It’s OK to shop around for rates — in fact, it’s encouraged. A mortgage is typically a 30-year loan, and your interest rate can mean the difference of thousands of dollars over the life of the loan. According to GuildMortgage.com, you can pull your credit report multiple times from mortgage lenders within 45 days of shopping for a mortgage and it will only count as one credit inquiry.
• Find a real estate agent: Finding a real estate agent is another crucial step. They are your voice during this process. They should have your back and know exactly what you’re looking for, answering any questions you may have. It’s OK to shop around for a real estate agent as well. Remember, they have to represent you the way you want to be represented.

Of course, there are many more steps to buying a home; however, this will get you started in the right direction.

Apartment Living

There are many perks to living in an apartment — especially if yard work is not your favorite! You won't have to be outside in the summer cutting the grass, pulling the weeds or planting flowers. In the winter, someone else will clear the parking lot and salt the sidewalks. When something breaks, you don’t need to call a repair person and pay for their services, you just call building maintenance and schedule a time for them to fix it. If you don’t like your neighbor, no worries! They may move soon, or you can move. Many apartment complexes offer amenities and perks you may be looking for — close to downtown where you can walk for entertainment, shopping, or work, or they may offer a great workout facility in the building.

While you’re not investing in property the way you would if you bought a home, leasing or renting means it can be easier (and faster) to move if life takes you in a new direction.

Making the Choice

Remember, it’s up to you to determine what will work best for your future. Everyone makes a choice about where they live based on their personal needs, wants, and financial situation. You are the only one who will know what’s best for you!

Sources:

• https://www.hud.gov/topics/buying_a_home
• https://www.guildmortgage.com/how-many-times-your-credit-is-checked-for-a-mortgage-application/