Although living at home with your parents does have its advantages (don't you love having someone else making you home-cooked meals?), there will come a time when you'll want to get your own place. You should start preparing for that eventuality long before you make such a large purchase. There are things that you should consider first.
Here are five tips for moving out of your parents’ house that can make the preparation, as well as the moving experience, go as smoothly as possible:
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1. Set aside a certain amount of money each month. Remember, it’s not just the purchase price of your new home that should be on your mind, but all those other costs that come with living on your own as well. They include groceries, electricity, cable, air conditioning and heating. By consistently saving money each month, you’ll have enough to live comfortably when you're under your own roof.
- 2. Keep up with your bills. If you cannot keep up with the bills you already have, adding other expenses shouldn’t be in the cards for you. Once you're in a stable place financially—paying your bills on time and in full—then you can take on more responsibility.
- 3. Determine if renting or buying is the better option. Once you decide that you’re ready to move out of your parents’ house, take some time to assess the pros and cons of renting and buying a home because one option may be more beneficial than the other. For example, you could have saved enough money to afford your own home, but you may not see yourself living in the same area for more than three or four years. In this case, renting is more appropriate. But if you’re planning on staying put for a while and want to have full creative control over a piece of property, buying a place is the better choice.
- 4. Contact a mortgage lender. One of the first things you should do after deciding to buy a home is get in touch with a mortgage lending company to find out what your financing options are. A good mortgage loan originator will expand on what you already think you know. They will also offer advice on how you can qualify for more suitable loans to help you. They may point out surprising things that affect your credit score or explain the importance of getting pre-approved and guide you through the process.
- 5. Prepare for the unexpected. Even if your plans are perfectly mapped out, things don't always turn out as you hoped they would. Your best offer may get rejected by the seller. Your closing date may get pushed back. Your move-in day may encounter delays. Some factors are just beyond your control. So, if you really want to move out of your parents' house, the best approach is to come up with a plan ahead of time, start setting money aside, and get the best advice you can get. And don't worry, be patient.
