Should I Switch from Renting to Owning?
Renting has been a good choice for you so far. You've been able to get control of your finances, explore the world a bit and wait until you're ready for the responsibilities of homeownership. Lately, though, you've been wondering if it's time to buy. And you're not the only one.
According to a RedFin survey mentioned in HousingWire, homebuyers are increasingly motivated to buy because of major life events like the birth of a child — with another big push coming from a marathon period of rising rental costs. For you and a growing number of others, renting may not be as appealing as it once was, or owning a home simply suits your current lifestyle better. If you haven't weighed the pros and cons lately, here are a few questions to consider before you decide.
Are you aware of the responsibilities of homeownership?
Owning a home will require responsibilities you're not used to with renting, such as property maintenance, taxes, insurance and any homeowners association rules. Knowing what you'll need to keep up with will keep you from being unpleasantly surprised. It will also steer you in the right direction if you do shop for a home. Maintenance-free communities and neighborhood management amenities are a great option for buyers who prefer to leave the grunt work to someone else.
Do you know what kind of home loan your current rent payment is comparable to?
Rental rates have been climbing in most locations, which means the amount you're paying each month in rent may cover the mortgage on a nicer place than where you're currently renting. A mortgage loan officer can help you determine what your monthly payment is equivalent to in a mortgage.
Have you checked your credit lately?
Your credit score will play a role in getting approved for a home loan. Some lenders are flexible with credit scores, but you'll want to know where you stand as you pursue buying. Even if your score is good enough to qualify for a loan, it never hurts to set goals for improvement.
Do you have access to trustworthy real estate and loan professionals to help you make the smartest choice?
Both buying a home or continuing to rent can have a major impact on your future. It's important to use a reputable real estate agent and qualified loan officer to navigate the home search, purchase and mortgage. Plus, having great professionals on your side will make sure you're equipped with the most up-to-date options and knowledge to make the best decisions.
Are you ready to move forward in life?
As we mentioned at the start of this blog, some of the most compelling reasons renters make the switch to homeownership are major life events. If you've felt stuck where you're at in life, and you're ready for the next step in a relationship, starting a family or career path, homeownership may be the key to moving forward. Start your journey into the next phase of life in a home of your own, making it part of the incredible moments and memories awaiting you.
Even with some lingering uncertainty, most renters really are ready for homeownership. After giving your situation an honest evaluation, it may simply come down to taking the plunge. Get started by talking to a mortgage professional to learn how you can qualify for homeownership.
