Rent v Buy–What Should I do??
As I’m writing this the song by the song, “Should I stay or Should I go now,” by The Clash is running through my head. Why, because it’s that kind of song that gets you thinking in either direction. Kind of like buying a home.
Should I rent or should I buy? Well, the answer is YES to both. Let me explain.
First, when you are getting ready to buy a home, you have to ask yourself: how do rents compare to home prices?
What do I mean by that. Well, with your rent, all you have is a rent payment. With your mortgage, you have a mortgage payment, property taxes, insurance, principle and interest and you may have a home owners fee, if you are buying a condo. So you have to be aware of the increased cost. We’ll explain why that is a good thing a little later.
The second thing? Are you emotionally ready to buy? You see, you are going through this process and it’s going to take a toll on you. It’s not going to be easy to go through this process. The thing you have to remember is that you are involved in this process and you are more knowledgable than all of your friends. Those same friends, who have your best interest at heart, will be giving you advice that isn’t quite what you need to be listening to. Take it from me, you’re going to get a lot and it’s going to drive you crazy.
The next thing you have to ask yourself is: What is my 5 year plan? Does that include moving out of state, does it include a new job, starting a family? If any of these things pertain to you, then, you should consider that is your decision to purchase.
One thing that many people forget about is their budget for home repairs. Stuff is going to break. I promise you that. It’s going to break at the most inappropriate times. For one reason or another it always seems to be the refrigerator that breaks. It will go out in the middle of the night on a Sunday and you are having to make a trip to Lowes on Monday.
Savings and credit. It is true that you have the opportunity to put little to no money down when it comes to buying a home, however, the less you put down, the larger your PMI or private mortgage insurance is going to be. Keep in mind that this will also need to be a part of your budget.
Credit is big because you must have a good credit score in order to buy a home. That’s why it’s a good idea to talk to a mortgage lender first. They are going to pull your credit, tell you how much home you can afford. Another good thing is if your credit isn’t so good, they’ll give you a roadmap on what you need to do to get your credit where it needs to be in order to purchase.
If you would like any information on these homes call 619-818-2992 or Click here to set up a time for a meeting or a chat on the phone.
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