Should I Buy Now?
Many believe that renting an apartment is easier to obtain than a house. This could be true if you were to: Pre-Qualify your self, look for your own house, have to communicate to all the professional involved in your loan, and the list goes on. But fortunately you, the buyer, have the liberty to let real professionals do all the hard work for you.
Shopping for a house is more exciting than trying to find an apartment. It's like buying your first car. The excitement consumes you, the anticipation doesn't go away until the day you sign and get your keys. Come on, who doesn't remember their first car? Buying a house is very similar. The buyer gets pre-qualified based on the credit, assets, and income. Once approved, the buyer is allowed to finally shop for a house and give in a offer. The Contract is then submitted and the buyer is only days away from closing on their new home and receiving their keys.
The fly-er above describes why purchasing a house is better than renting an apartment.
With monthly payments of $2,258 for a 3 bed/ 2 bath renting an apartment is more expensive than purchasing a home. After 12 months of renting in a apartment complex the cost would be $27,096 gone down the drain since it will never be yours in the long run. Let's say you rent for 30 years, that's $812,880 in rent! As compared to buying. With a home of $150,000 in today's market, the monthly payments would be $825 with 3.5% down (PMI is included in the monthly payment). In 30 years of paying $825 a month it would be an estimate of $297,000. That's $515,880 cheaper than renting for 30 years!
What if I wait to purchase?
Waiting may cost you more than purchasing a home in today's market but will still be cheaper than renting an apartment. Let's say the sales price and interest rates increase in the time to come. With a sales price of $175,000 the monthly payment would be $1,059. To finish paying off your mortgage in 30 years the estimate comes out to be $381,240. That's a difference of $84,240 between purchasing now and later.
Nevertheless, purchasing a home is inexpensive compared to renting. Numbers do not lie.
For more information about how to obtain a home loan go to our website or give us a call! We can't wait to hear from you. Remember even if you are not ready right now we can help you get on track!
1445 North Loop West suite 105
Houston, TX 77008