Buying vs. Renting A Home: Which side are you on?
Almost everyone wants to own their own home. Who doesn’t? You get the pride of ownership, mortgage interest and property tax deductions, capital gain exclusions, and more left to your imagination.
It all sounds perfect but unfortunately, not everyone can easily buy off a home even if they wanted to.
It’s not a matter of want or need but a matter of resources. Buyers need to produce more expenses and a total of down-payment on top of their current monthly bills.
Not sure if you’re qualified to start investing on buying a home?
4 Factors You Need to Consider Before Deciding to Either Buy a Home or Rent a Home
1. Debt Ratio
Apart from your mortgage, taxes and insurances, and monthly salary, lenders look deeper into your profile. This goes deeper into your undivided monthly debt payments and principal/interest/taxes/insurance payments (PITI).
Buyers with high-debt ratios are quickly shunned from the screening.
How much is a high-debt ratio? Accounts with a 50 percent debt ratio or higher are already considered a high-debt ratio. This means you may not be qualified to apply for a loan.
2. Credit Reports
Have you checked your credit reports?
Lenders are strict on assessing property buyers with bad credit reports. A minimum of three late payments is more than enough to consider you ineligible from applying a loan.
Evaluate your credit report before plunging into the hands of the lenders. You can assess your credit report here for free.
3. Job Security
Or a security of your source of income, to be specific.
Sure, you might be earning $150,000 annually. But just how secure is this job in the long run? Since it’s a mortgage monthly payment, losing your job could mean losing your home to foreclosure.
Lenders will undergo a background check of your company and your job stability in cases they decide to lay off or require you to relocate to another city for your job.
4. Renting Costs Significantly Less
Your rent could be ¼ the amount of your mortgage and everything’s working fine. Let’s say your rent costs around $2,000. Is it really worth it to pay $8,000 per month to rent a home?
Sounds exhausting? Here’s another option:
You could try Florida’s Buy Like Rent.
As we always claim, we work to help YOU.
Our system works tirelessly to support you in understanding the basics of home ownership and find the perfect home for your budget.
Only got a $1000 dollar allocated for your home? No problem! Your $1000 dollars can find you a $150,000 home.
Buy Like Rent work with official government agencies to find you a good home, assists you with your down payment struggles, get you an affordable interest rate and more.
With our hearts and minds, you are in good hands with Buy Like Rent.
