March 16, 2020
Moving out on your own is an exciting time, but can also be stressful. Before that thought comes to fruition, here are five things you may want to consider:
- How much money do you have saved up?
If you have not yet outlined your budget, here is how you can start. Creating a budget can help you figure out how much money you have for a deposit on a rental or a down payment. Be mindful of keeping enough for an emergency fund. Some experts say it is a good idea to have three to six months of living expenses to cover unexpected costs.
- How much debt do you have?
Consider all of your current and future financial expenses, including your car payment and insurance, credit card debt, and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home.
- What is your credit score?
Once you determine that you are able to cover the expenses of moving out, it is a good idea to check your credit score. Expect to have your credit history examined by a landlord or a lender, as it signifies the likelihood of your paying the rent or mortgage on time.
- Have you factored in all the costs?
Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Consider other costs like purchasing furniture, groceries and other daily needs. Renters should consider the cost of rental insurance. If you are planning to buy a home, factor in taxes, mortgage insurance and possibly a homeowner association fee.
- How long will you stay?
Generally, the longer you plan to live someplace, the more it might make sense to buy. Over time, you could build equity in your home. On the other hand, renters have greater flexibility to move and generally have fewer maintenance costs. Carefully consider your current life and work situation and think about how long you want to stay in your new home.
If you are ready to purchase a home, OceanFirst Bank can help you get started on the process today!
Disclaimer: The information provided in this article is for general informational purposes only, and OceanFirst Bank makes no representation whatsoever as to its accuracy or completeness. It should not be either construed as, or relied upon as, advice or an opinion. Before making any decision which relates to the subject matter of this article, seek the advice of a knowledgeable professional. OceanFirst Bank will not be responsible for any errors or omissions in this article, or for any expenses, loss or damages which may be attributable to the use of the information contained in this article.