When is the right time to stop renting and buy a home?December 8, 2020
There is no denying the advantages that renting offers, but at some point in our lives most of us will start thinking of becoming a homeowner. Having a house on your own is a dream come true for many. But buying a new home can be a big deal, especially if you have only rented.
We want to give you a list that can help you decide if buying is the next step for you.
Your rent keeps going up
In most areas of the country, rents are rising and rising. In some neighborhoods, the cost of renting is even higher than the average home mortgage monthly payment. And this is one of the most important reasons for many to buy a home.
Attractive interest rates
One of the better reasons to buy a home is when mortgage rates are low and desirable. Interest rates won’t stay at this stage forever. Because they can turn quickly it is better to take the opportunity.
You are managing your debt well
You don’t need to be debt-free to buy a home, but must be handling your debt correctly. Most loan companies know this, so they only want to know if you will be able to afford an additional payment, such as your potential monthly mortgage payment.
So if you can get your debt down to a more manageable level or find ways to generate more income that can help you to get pre-approved you don’t have to worry about this aspect.
You found a place you love
Maybe you have already pictured yourself living in a specific neighborhood or town that has all the amenities you love. But you need to consider if you intend to stay there for an extended period of time, you need to know that you’ve found a place that you really love and would like to grow old in.
If you are ready to settle down and you can see yourself and your family in the same place for at least the next five years, buying a home could be a great idea.
Paying money for others
Maybe has crossed your mind the idea that your rent payments are paying the mortgage of the landlord or property owner.
Buying a home is an investment for you if you are ready to put all that money you spent on renting towards your future home. You can also expect that over the duration of your mortgage, you will gain a lot of benefits from putting your money into your own property.
Your money goes back to you!
You need more room to fit your needs
Having more room is another substantial reason for purchasing a home. When your family gets bigger, you will need a new home that can give you room to expand and provide all the spaces they need so their life becomes easier.
Buying a home can also be rewarding and fun, especially if it involves your whole family’s needs and desires.
Down payment and closing costs
For many people, who are considering buying a home, one of the most difficult steps to take is saving for a down payment. It can seem even harder because of student loans and credit card debts, but if your income has improved and have a stable job, you can find a chance to save enough money to cover this.
It’s also important to remember that the 20% down payment requirement for a mortgage qualification is no longer the only option.
So you will know that it is time for you to stop renting when you are ready to take the responsibility of being your own landlord, aside of being committed to putting your money for your own property and not someone else’s pocket.
Owning a place that you can call your home it’s challenging but it’s worth!