Apr 8, 2022

Conquering FOMO: Everybody’s Doing it, But is Buying a Home the Right Decision For You?

The cost of owning and renting a home has risen exponentially, and this has many potential homeowners wondering if now is a good time to buy. The internal pressure to hurry and make a decision becomes even harder when friends or family enter the market with the express purpose of buying a home before prices get any higher. Sometimes “fear of missing out” (FOMO) coerces people into making a decision to buy a home without truly understanding the pros and cons. There are several factors you should consider when buying a home in the current market so you can overcome the risks inherent in FOMO and find a place that suits your needs!

Have Your Goals in Mind

Know exactly what you want at all times. By writing these goals down, you can refer back to them when facing the decision to buy the house. If it doesn’t support what you’re looking for, take a step back and reevaluate the situation. Remember, a home is one of the biggest purchases of your life. You are responsible for every financial snag that you may hit. Are you ready for it? If you said yes, explore our Trumark communities, contact a New Home Specialist and let us help you find that dream home!

What is Your Financial Situation?

Before shopping for a home, it’s always good to review your current financial situation, including income sources, debts, savings, etc. Your finances offer a great way to eliminate FOMO from the equation and determine whether buying or renting is the better option for you. If you can afford it, owning a home is a great achievement and offers both stability and equity. However, not everyone is financially ready for that option. For those who are working toward greater financial security, but aren’t quite there yet, renting is often the better option. The good thing about renting is that it gives you an opportunity to save money toward the purchase of the kind of home you want.

Bonus tip from the Trumark team: Renting for 6 months to a year where you want to buy a home lets you truly understand the area and take a test drive of the community!

Know the Interest Rates

Take a close look at the Mortgage Interest Rates your lender is offering you. This way you can be sure that all the finances involved don’t push you over your budget. There are many many factors to consider–such as income, projected career growth, savings, and family planning–so, it’s important that your loan meets any and all financial situations. Learn more about the basics of mortgage loans and interest rates on our blog.

Work with the Experts

Your friend just posted their new home on social media. It is beautiful, and you want to buy one just like it. Before you make a hasty decision, it is important to talk to a trusted financial advisor first! If you’re looking into a Trumark home or community, reach out to our New Home Specialists. They will provide you with the resources necessary to power through the home buying journey. They’ll even connect you with our preferred lender who can help you find the best rates. Even better, they can lock in the rate, ensuring it doesn’t increase when your home is ready.

Have a Backup Plan

Not everything works out, and that’s okay. Things are rapidly changing in the real estate market, and it’s important to have a backup plan. Before jumping into a life-changing decision, be aware of what’s going on in the home buying community. If something makes it hard for you to meet your long-term goal, don't be discouraged; if you have a strategy, you can fulfill another objective until you are ready to meet that change.

Pick and Choose

If you are ready to buy a home, you likely already have an idea of what you want your home to look like. We’ve all seen the HGTV shows where someone purchases an older home and remodels it on an amazing shoestring budget. However, these shows rarely chronicle what happens when homeowners blow their budget on upgrades that cost more and take longer than what they were expecting. This is one of the reasons why it’s a good idea to look at a new home if you have a strict budget. If your financial situation does not leave room for remodels and upgrades, don’t put yourself in debt. Instead, choose options that fit into your budget. Once you can afford it, you can always plan to add other elements later.

Don’t let FOMO cause you to make a decision that could negatively affect your financial future. Instead, find ways to work around it and get a home that is perfect for every aspect of your life. Visit our website to contact a Sales Agent and start your future home journey!