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Buying Vs. Renting | What You Need To Know

Most people buy homes for very emotional reasons. But how do you know if it is time for you to purchase?

Most people who rent can actually afford to buy their own home. So what is stopping them? 

A lot of people believe that owning a home in requires a big down payment, which is difficult to save while paying all their regular monthly bills. Others are convinced they wouldn’t qualify for a mortgage, and that the payment would be too much anyway. Additionally, just about everyone is overwhelmed by the process of buying a home. It seems life would stay a whole lot easier to just keep paying rent!!

Here are a few facts that may help in your decision:

Buying Vs Renting

FACT: The average mortgage payment costs about the same or just slightly more, as the average rent payment. For example, if you are paying $900 per month in rent, you could be making mortgage payments on your own $110,000 – $125,000 home. That would probably buy you a lot more space (and privacy!) than you have right now.

FACT: Many sellers are willing to pay all or part of your closing costs when you purchase a home.

FACT: The majority of renters in metropolitan Atlanta surveyed said the biggest reason they don’t even check to see if they can buy a home is that they are afraid of pushy salesmen, or feeling obligated to buy when they are not ready.

How do you stay in control, and figure out how much home you qualify for?

We always counsel folks to talk to a real estate lender and get pre-approved before they step a foot out the door to look for homes. There are so many things this accomplishes.

First: You are in control at this point. You know what you can afford, and what kind of real estate loans you can get. You also know if you need the seller to pay closing costs and can use this in your bargaining.

Second: If there are credit problems, you have time to get them off your record. A good lender will help you do this. If you wait until after you have found a home you love, you may lose it if you have credit glitches that could have easily been handled first.

But remember, ultimately the choice also involves a lot more responsibility on your part. No more calling the landlord to fix everything. And yes, you do have to cut the grass, the neighbors generally do not appreciate it when you don’t.