Buying your first home is an exciting time. You’ve decided to step out of the comfort of renting or staying somewhere rent-free and step into a place you can truly call your own. But if you’re not interested in a large space, is owning a condo the same thing as owning a house?

Both options have their benefits and drawbacks, but it ultimately comes down to what you value in a home. You must choose which option fits you correctly, or you might find yourself thinking the grass is greener on your neighbor’s lawn.

We’ll walk you through the process and differences of buying a condo vs. buying a house.

What It’s Like to Buy a Condo

A condo, short for condominium, is more like an apartment than a single-family house. It requires less upkeep than a house but also has a greater lack of privacy. In many cases, it’s a more affordable option and makes for a great starter home.

Pros of Buying a Condo

For starters, if you can’t comfortably afford a single-family home, using a condo as your starting point might pique your interest. Condos are, on average, than traditional single-family homes.

You’re also not alone when it comes to maintenance. While you might have to pay for anything that acts up within your own home, you don’t have to worry about outdoor maintenance. The homeowner’s association will likely pick up the costs for maintenance like cleaning gutters, shoveling snow, and dealing with HVAC problems. This also includes negotiating with and handling contracts that may befuddle an individual homeowner.

Additionally, you may find condos in more desirable locations and neighborhoods. Since condos are typically dense construction projects, condos can be near stores, restaurants, or other places of interest. When living in a condo, you will also find that your insurance may be cheaper than standard homeowner’s insurance. With less ground to cover, you’ll be paying less of a premium.

Cons of Buying a Condo

Unfortunately, what you save in fees may pour straight into . Homeowner’s associations manage building upkeep, policies, and mediation for condo owners. They can also cover some utilities like water and sewer. If you can handle that recurring payment, you’ll likely still save in other places.

HOAs can sometimes be a source of conflict. This is because you may encounter more rules, like what you would find in an apartment complex. For example, you may not be permitted to make certain changes to your property or need to abide by pet restrictions. You’ll generally have less autonomy than in a single-family home.

Last, condos can be harder to sell than single-family homes, so consider the resale value if you’re planning to stay in your condo for the short term. Depending on your location, condos may appreciate more slowly. They can spend longer time on the market and sell for less than houses, though that margin is decreasing.

What It’s Like to Buy a House

Buying a house may well be most of the population’s dream. While some think that buying a home isn’t in the cards for them and instead opt for condos or apartments, it’s possible to have a house for near the same price as a condo if you’re prepared for the financial steps you’ll need to take.

You must make sure you can keep up with payments while being fully prepared for all the benefits and difficulties of owning a house. Here are the ins and outs of homeownership.

Pros of Buying a House

Houses are easier to sell in the future. If you plan on moving at any point, you can rest assured that it’ll be easier for you to find a buyer for your house than for a condo. The ease of selling may be in part due to the value of the land. Land appreciates over time because it is in limited quantity — humans can’t just make more of it.

Another major boon to owning a house is that you have fewer rules to follow. Within reason, you can do what you want with the house and be less concerned about noise. You can make adjustments as needed, whether by adding a deck or painting walls (check your city or town rules for building restrictions). You have the flexibility to change things up. Plus, you will likely have a yard that children and animals can play in, which may be ideal for some households.

Cons of Buying a House

Unless your house is in an active and well-funded community, you may not have access to the amenities you want, such as a modern gym or private pool- unless you create your own. You may also find you have to pay more in closing costs for the larger home, which can make the initial purchase more challenging for first-time buyers.

Since it’s your house, inside and out, you will have to keep up with the maintenance yourself. This isn’t a problem for many savvy homeowners that can DIY. However, it can prove stressful in an emergency or for a household that isn’t confident in evaluating and hiring contractors.

Last, there may be less sense of community. Unfortunately, when living in a house, you often need to go out of your way to meet your neighbors, who may be fond of their privacy. Humans thrive on social interaction, which can boost your spirits and . If you choose to live in a private home, be sure to reach out to your neighbors to introduce yourself.

Is It Better to Buy a Condo or a House?

Only you can answer the question of which type of home is right for you. Condos offer quite a bit for less money, but houses give you a sense of independence while allowing you the privacy and land you want. If you have young children or active dogs, moving into a house might give them more room to frolic and play. If you live alone or with just a partner, you may choose to cut back on spending and maintenance and stay in a condo.

Whatever you choose, make sure you’re making the best decision for yourself and your family, no matter what size it is.

About the Author: Evelyn Long is the editor-in-chief of , an online resource for the real estate market. Her freelance writing has been published by the National Association of REALTORS®, Insights for Professionals and other prominent industry magazines.

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Year after year, home buyers continue to make the same mistake…

They wait until they find their dream home to start the process of qualifying for a home loan.

Getting pre-approved for a home loan should actually be the very first step in your house hunt!

Pre-approval:

• Confirms that you will qualify for a home loan when you find your dream home.
• Tells you how much money you can qualify for so you’ll know exactly what your budget is.
• Strengthens any offer you make on a home by assuring the sellers that obtaining financing to close the deal won’t be a problem.

Are you wondering what it takes to qualify for a home loan? Here are the three things you’ll need:

1. Good Credit

Your credit history is exceptionally important when applying for a home loan.

First, you need reasonably good credit to qualify for a home loan period. Generally, you want to have at least a 620 credit score.    

But don’t just settle for good. The better your credit score is, the lower your interest rate will be. And the lower your interest rate is, the lower your monthly payment (and overall repayment of the loan) will be!

You should also know that it’s possible to buy a home with credit as low as 500 using an FHA loan. Ask your real estate agent or lender for more information about qualifying for an FHA loan.  

2. Proof of Income

Lenders need reassurance that you make enough money to be able to make your mortgage payments (including property taxes and homeowner’s insurance) every month. So they’re going to want to see proof of your income.

Your lender may ask to see pay stubs, bank statements, tax returns, or any combination of those to confirm your income.   

3. Healthy Financial Ratios

Your lender will also want to know about your existing debts. How much do you owe in student loans? Are you making payments on your car?

Knowing how much debt you’re currently in helps your lender determine whether it’s financially responsible for them to increase your debt with a home loan.

The Debt-to-Income Ratio is one of the most common financial ratios lenders check. It tells lenders what percent of your income is allocated toward paying off your debt.

As a general rule-of-thumb, your total housing cost (mortgage, property taxes, homeowners insurance and any HOA dues or mortgage insurance) should be less than 31 percent of your pre-tax income. And your total housing plus all other debt payments should be less than 43 percent of your pre-tax income.  

If you’re uncertain about your ability to qualify for a loan, or you’re just wondering how much you’re qualified to borrow, ask a lender. They can review your credit and financial documents to pre-approve you for a home loan in no time.  

The home loan process may not be the easiest thing in the world to navigate, but there are professionals to help you every step of the way. So contact a lender today to make sure you qualify for a home loan, and you’ll be well on your way to buying your dream home.  

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of »Ê¹ÚÌåÓýapp International. This post was written by Michelle Clardie. Michelle is a professional real estate blogger, specializing in ghostwriting Realtor® blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at www.michelleclardie.com

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