18 Useful Steps For Moving Out Of Your Parents’ House

Have you been thinking about leaving the house you grew up in and starting a life of your own? It’s understandable if you have. Moving out of your parents’ house can be an exciting and rewarding experience. But before you make such a life-altering decision, it’s important to know the steps to take for success – especially if you plan on buying a house.

How do you know if you’re ready to move out and buy your own home? And if you are, what important factors should you consider? Read on to learn how to successfully move out of your parents’ home.

1. Determine That You’re Ready To Move Out

Before making any hasty moving plans, it’s crucial to determine whether you’re ready for the commitment that comes with homeownership.

The U.S. Department of Housing and Urban Development's (HUD) Office of Policy Development and Research (PD&R) explains, “Prospective home buyers often do not know or understand their financing options, and homeowners can encounter unexpected costs, struggle to maintain their initial payment plans, and encounter foreclosure rescue scams.”

To avoid these potential pitfalls as a first-time home buyer, it’s ideal to have the following:

• A stable source of income and employment: Since the average mortgage loan term is 15 – 30 years, a lender will want to see evidence of stable income, such as pay stubs and W-2s, and a solid work history.

• A qualifying credit score: Your credit score assesses the risk involved with giving you a loan. Most lenders require a minimum credit score of 580 to obtain a home loan. However, a score above 720 is likely to give you the best loan terms.

• Minimal or no debt: If you have a lot of debt, it can be difficult to get a loan, making your loan more expensive. You may want to pay off your debt or pay it down before adding on the cost of homeownership.

• A thorough knowledge of the costs of homeownership: Homeownership is much more than a monthly mortgage payment. Before buying a home, consider the down payment, cost of insurance, property taxes, closing costs, utilities, maintenance and other expenses.

2. Discuss Your Decision With Your Family And Friends

So, you’ve determined that you’re ready for the financial responsibility that comes with homeownership. What should you do next?

It may be helpful to tell your parents and other loved ones about your decision. Your loved ones may express concerns about how moving out could affect your safety and overall well-being. They may also worry that you’re not ready to take such a big step.

If this happens, it could be a good idea to share your plans for living safely and responsibly. By keeping your loved ones informed, they may be more willing to provide any needed help, and you can also lean on their experience.

Moving out of your parents’ house can also impact your relationships. Your parents and other important people in your life may miss you or fear negative relationship changes. For this reason, think about how you’ll stay connected with your loved ones after you move. Perhaps set aside time each week to call or visit them!

3. Set A Deadline For Your Move

Once you’ve told your family and friends of your decision, it’s time to start thinking beyond the hypothetical. Setting a deadline for moving out is an effective way to advance the moving process.

When should you move out? That will depend on your unique situation. If you’re buying a home, you’ll want to think about factors such as the time of year, current housing market conditions, availability of homes and events in your personal life.

4. Calculate Your Budget

As we’ve already discussed, moving out — and buying a home — requires a great deal of financial planning. So, you’ll likely benefit from figuring out how much you can afford to spend each month.

This is especially true when buying a house. It’s important to consider how a monthly mortgage payment will fit into your budget. You’ll also need to account for a down payment and closing costs, which we’ll discuss a bit later.

To calculate your budget, track your monthly expenses and then compare that figure with your monthly income. This can help you determine how much house you can afford and set a target monthly payment.

Making an honest assessment of your budget can help you to decide whether to pay off debt or save for a house.

5. Research Where You Want – And Can Afford – To Live

There’s no shortage of amazing places to live. So understandably, you might be unsure about where you want to live and which place fits into your budget. To narrow it down, you may want to ask yourself questions like:

• Will I be able to find a job that supports my livelihood? Are there opportunities for career growth here?

• What goods and services do I need close by?

• What is the cost of living and housing?

• How close do I want to be to family and friends?

• What cultural and social aspects are important to me?

This is by no means an exhaustive list, but it’s a way to examine what’s important to you and determine if a prospective place will align with your needs.

6. Start Saving For A Down Payment And Closing Costs 

The next step to moving out of your parents’ house is crucial, and that’s making sure you’ve saved enough money to cover two of the one-time, upfront expenses you’ll encounter when buying a home – a down payment and closing costs.

Down Payment

A down payment is the price you’ll pay upfront when you close your home loan. You can expect to pay at least 3% of your property’s purchase price. Your down payment amount will usually depend on the type of mortgage you choose, your financial situation and the type of property.

Saving for a down payment can be challenging if you’re a young adult who’s buying a home for the first time.

Paul Sundin, certified public accountant and CEO of retirement services company Emparion, says, “For young adults who [have a newfound control] over their finances, the hardest part will be adjusting their spending habits to save for a down payment. Regardless, this is a prerequisite and a defining factor on whether or not buying a home will be possible.”

To save for a down payment, Sundin advises young adults to consider cutting costs in any way possible. He suggests using coupons to save on groceries and looking into options for adjusting current payment plans. This includes items such as your car insurance, renters insurance, health insurance, cable, internet or cell phone plan.

Closing Costs

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