Buying a home for the first time is a major life event for many. The feeling of having a place of your own can instill a great deal of pride and satisfaction.

At the same time, owning a home is a serious decision that brings a new set of responsibilities. It’s a different experience from renting, and it comes with its own set of challenges. Therefore, it makes sense to prepare before you take a serious look at the listings.

If you feel like you’re ready to be a homeowner, now is a good time for a gut check. Here are a few questions you should be able to answer definitively before you take the plunge.

“Are my finances in order?”

As you can imagine, buying a house is one of the largest, if not the largest, purchases someone can ever make. It’s a financial commitment that can span decades. On average, the terms for most mortgages are thirty years.

NerdWallet points out some of the upfront costs of buying a home:

• Down payment: A portion of the purchase price of the house to secure financing, which determines the amount of your loan and its monthly payments.
• Closing costs: The fees and expenses paid for a home buyer and seller to complete a transaction, which the down payment doesn’t cover.
• Move-in expenses: The costs to move your belongings from your old place to your new home, and also cash needed for immediate home repairs or improvements.
  

Conventional mortgages traditionally require a buyer to have 20% of a home’s purchase price as a down payment. While some lending options will allow you to go under that threshold, you may be subject to additional fees, such as private mortgage insurance.

While we’re talking about insurance, let’s talk about the additional financial obligations that come with homeownership. Other costs you’ll have to budget for may include:

• Homeowner's insurance: Policies that are meant to help cover the costs of damage or losses to your property. Some lenders require you to have a policy as part of the terms of your mortgage.
• Flooding or adverse weather insurance: Many homeowner’s insurance policies don’t cover specific extreme weather events, like flooding caused by a hurricane. You may need to purchase a separate policy to maintain full coverage for these events.
• Homeowners association fees: Fees collected by the organization that manages the common areas and facilities upon which your property may reside.
• Property taxes: These are fees local governments collect on homes, real estate, and land. Owning a house also means taking on a higher tax burden beyond federal and state income taxes (where applicable).
  

Don’t forget that your emergency fund must be expanded to cover the cost of general upkeep and maintenance. Inevitably, you’ll have to replace lightbulbs, windows, and appliances. On a long enough timeline, those costs may extend to replacing the roofing, electrical wiring, or plumbing system.

As you can see, “paying for a house” is more than meeting the monthly mortgage payments. You will likely have to cover other financial responsibilities related to the home, in addition to your living expenses. Ensure your finances are prepared to cover these expenses.

“Am I prepared to compromise?”

Experienced real estate agents and homeowners will probably tell you that the home-buying experience is both a financial and emotional rollercoaster. Depending on where you want to move, you may have to face tough choices.  

Everyone is familiar with the initial cost of a house and general maintenance. However, something that requires a little extra digging and preparation is how often you’ll have to compromise.

In other words, while you may have a checklist of what you want from a dream home, finding a property that checks every box while staying in your budget can prove challenging.

Picture what you want from your dream home. Perhaps you'd like to be near the nightlife or trendy shopping. Or, you’re committed to providing your children with the best possible education.

Very rarely will you find a house that checks all of your boxes. Where a house is located can also influence lifestyles. Here are some scenarios you may encounter when you peruse the listings:

• The house is move-in ready, but the property requires paying into a homeowners association.
• The property has an outdoorsy charm, but isn’t connected to public water and sewer.
• The house is located in an award-winning school district, but is very car-dependent.
  

The above situations only take into account the overall location. You may also need to be prepared to invest additional effort after closing to develop your house into the home you desire. That will require time and money. For example, your prospective house may require:

• Replacing old appliances.
• Updating the kitchen or bathrooms.
• Updating the roofing, siding, and flooring.
• Upgrading the electrical and plumbing systems.
• Adding a pool, spa, or other recreational features.
  

The last thing you want as a first-time homeowner is to fall into a money pit. Do your due diligence. Have an honest assessment of what you want most from a house and its location, and be prepared to consider tradeoffs or temper expectations in case “the perfect home” isn’t feasible at the moment.

“Why am I buying a house?”

In its home buying guide, Bankrate states it clearly: Determine why you want to buy a house in the first place. If you aren’t clear about what you want out of homeownership, you could be stuck with a financial burden that could change your life unexpectedly.

Have goals in mind before checking the listings or calling a real estate agent. Knowing what you want and recognizing your needs will give your house hunt a purpose. A clear direction will also keep your decisions grounded in reality.

Some additional avenues to pursue while you determine if homeownership is right for you:

• Determine what’s most important to you in a home.
• Weigh the benefits of homeownership against renting.
• Ensure that buying a house makes sense financially for you.
• Decide if the location of your house is a good fit for your family and lifestyle.
  

Buying a home presents many opportunities. At the same time, it requires a fair amount of reflection before committing to the entire process. Have these conversations before checking the listings and applying for pre-approval on a mortgage.

First Florida empowers people to confidently enter the housing market. When you’re ready to take those next steps, we’re here for you. Explore our various lending options, including first mortgages.