When you are renting a property it can often feel like you are handing over your hard-earned cash to pay for someone else’s mortgage! However, while there are many benefits of buying a home in Knoxville and becoming a homeowner yourself, there are a number of factors that need to be considered when you are deciding if it is the right time to take the plunge! Let’s look at some of the questions that you need to ask yourself if you are considering buying a home in Knoxville so you can stop renting!

Financial Considerations

When you are looking at buying a home in Knoxville, one of the main considerations is going to be your financial position. Here are some of the financial considerations that you will need to look carefully at.

How Much Are Your Housing Related Expenses Going to Be?

The first step in deciding if the time is right to consider buying a home in Knoxville is to determine a budget that covers all of your housing-related costs. Some of the things you will need to include are:

• Mortgage - Your monthly mortgage repayments will depend on how much you borrow, the interest rate, and the length of your terms. If you put down less than 20% you will also want to budget for mortgage insurance.
• Property Taxes - The amount you will pay in real estate taxes is going to vary depending on where you live. At present, Knoxville property tax is $2.1556 per $100 of assessed value. These taxes are often a deductible expense on your income tax.
• Homeowner’s Insurance - Mortgage lenders will almost always require that you have homeowner’s insurance as a condition of your loan, but regardless of this, it is a wise choice for all homeowners.
• Utilities - Something important to remember when moving from renting to homeownership is the cost of utilities! Many rental agreements will include at least partial utilities, but as a homeowner, you need to budget for all of them!
• Maintenance & Repairs - There isn’t really any reliable way to estimate how much you need to pay for maintenance or repairs outside of regular preventative maintenance. However, it is going to be a lot more manageable if you have budgeted for some each month.
• HOA Fees (if applicable) - If you are buying a home in Knoxville that is part of a Homeowners Association (HOA) then you will have monthly dues to pay.

How Long Are You Planning to Live in The Home?

Buying a home in Knoxville is a large investment. In addition to the cost of the home, you will also have closing costs, mortgage fees, real estate fees, and moving expenses. Since it is such a significant expense, it is better to stay in the home long enough for it to increase in value and offset these costs. If this will be a short-term move, then it may make more financial sense to continue renting instead of buying a home in Knoxville.

Are You Eligible for a Buyer Assistance Program?

Something to research when you are considering buying a home in Knoxville is whether or not you are eligible for a buyer assistance program, especially if you are a first-time buyer. These programs are available on a national, state, or local level and could significantly reduce the cost of home ownership.

Non-Financial Considerations

Your finances are not the only thing you need to think about when considering buying a home in Knoxville instead of continuing to rent. Let’s take a look at some of the other important considerations:

• Responsibility - Owning your own home comes with a great deal of responsibility. A key advantage when it comes to renting is that your landlord will take on the responsibility for much of the maintenance and repair work. However, as a homeowner, you will need to assume the responsibilities of maintaining your home. Are you ready to shoulder the burden of maintaining your driveway, working the yard, replacing the roof, and all of the other chores that come with owning a house?
• Lifestyle Changes - As noted above, it is best to stay in your new home long enough to benefit from the value increase. That means that before buying a home in Knoxville, you need to consider how your lifestyle and your housing needs might change. For example, if you intend to start a family then you will want to choose a home large enough to accommodate that. Is there a possibility that you will need to relocate for work in the near future? These are just a couple of the things you need to consider to determine if this is the right time to become a homeowner.
• Long-Term Real Estate Goals - Are you thinking about buying a home in Knoxville with the goal of investing in real estate long-term? You may buy your first home with the intention of it becoming a rental property once you are ready to move again. If that is the case, you need to factor that into your decisions and your budget.

These are just a few of the things you need to think about if you are considering giving up renting and buying a home in Knoxville instead. If you need to talk about your options, or you are ready to start looking for your first home Wright Realty is here to be your guide.

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Wright Realty is a full-service real estate concierge with a wholistic approach to buying and selling property in East Tennessee. We are your trusted advisor and keep open communication throughout your entire buying/selling process. Real Estate done "Wright" means more than just a 'transaction'.

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Visit www.realtydonewright.com or call 865-556-8599