The question of Renting or Buying is always a decision some spend a lot of time deciding! There are situations where maybe it is not the best idea, but most often buying a property could provide a lower payment if buying!
1. How is your Credit?
Call a lender and have your credit pulled, and they can tell you if there are any issues you need to take care of, or that you are good to go. You will be required to submit many documents for them to review your credit.
2. Will you Remain in the area for two years?
If there is a chance you will only stay for a year or less in one place, maybe buying a property may not be a good decision. If you stay in a home for two years (out of five years), you can move to another home without capital gains. **check with an accountant for more details
3. You Don't have to have 20% down to get into a home. There are lenders that do as less as 3% of the purchase price for conventional financing or 3.5% for FHA financing. You DO NOT need a 20% down payment, but if you do, this will eliminate the PMI. (mortgage insurance) There are some programs that have grants or gift funds (some need to be repaid) if you do not have a down payment and closing costs.
4. Buying a home gives the homeowner a sense of success. You OWN a home that you can put your stamp on, change decor, remodel, landscape, to make it yours, without the approval of a landlord. You can pay the mortgage off, and you own it free and clear.
5. Buying a home gives you equity (in most markets) and after a few years, you will have a larger down payment if you decide to up-size your home. We have seen an average of 10% increases in value for the last 4.5 years.
If you have more questions about this process - check out my page for Buyer Questions.
Did I give enough reasons to at least think about a home purchase? If it sounds good, give me a call, and let's talk about your options!
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