How to Know When You’re Ready to Stop Renting and Buy a Home
Renting can offer great flexibility and low maintenance costs, but if you’re like many renters you may have thought about the possibility of homeownership. So how will you know when you are ready to buy your own home? Here are some signs you may be ready to stop renting and buy a home.
#1 – Rents are on the Rise
It’s no secret that rental prices have increased the past few years. Increasing rents can be frustrating if you’re trying to budget your monthly housing costs or put money away to save.
#2 – Mortgage Rates are Still Low
Mortgage rates are still at historically low rates but they will not stay this low forever. A lower interest rate will not only save you money on your monthly mortgage payment but you will also spend less in interest payments over the life of your loan and qualify for more home.
#3 – It’s Time to Settle Down
If you’re ready to stay in the same area for more than a few years, you may be ready to buy a home. Real estate is an investment and like other investments, you need to nurture it. If you’re job isn’t stable or you might need to move quickly, homeownership may not be for you.
#4 – You Don’t Want to Pay for Someone Else’s Mortgage Anymore
As a renter, you rent payments are paying the mortgage of your landlord. Why not be your own landlord and build equity in your own future. With each mortgage payment you make, you’ll increase the equity in your home.
#5 – You Can Financially Afford It
You do not need 20 percent down or perfect credit to buy a home. There are programs that require as little as 3 percent down and others with no money down. Talking to a reputable lender who can compare different loan programs is your first step to see if you qualify. In certain areas, there are also grants and other income programs that can also assist first-time home buyers.
If you’re ready to leave renting behind, before you start looking at homes with your favorite real estate agent, you’ll want to get pre-qualified with a mortgage lender. Getting pre-qualified helps you know exactly how much home you can afford in today’s market. Going from renter to homeowner is a big decision and very rewarding. Let our team of experts at TCP Real Estate help guide you through the process! This is what we do best!
