Buying vs Renting: What Should You do?

April 12, 2018
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It’s an age-old question, should I buy a home or should I rent? There’s really not a 100 percent correct answer...

It’s an age-old question, should I buy a home or should I rent? There’s really not a 100 percent correct answer. There are many factors that play into your life to consider in order for you to determine which way you should go. First, ask yourself some questions.

  • Do you plan to live in the same place for more than a couple of years?
  • Can you afford a down payment of at least five percent?
  • Are you prepared financially for any property taxes, private mortgage insurance (PMI) and additional preventative and unexpected maintenance?
If you answered no to the questions above, renting is probably the safest route to take. When you sign a lease, you’ll generally be vested for a year at a time. Depending on your lease and the landlord’s policies, you could get a month-to-month option set up or sublet if you need to leave sooner than a year. Your monthly costs are generally fixed and some lease agreements even include utilities. The other good news is that your landlord is responsible for fixing issues with the property, such as a leaky roof or broken appliance.

On the flip-side, if you answered yes to those questions, buying a home could be your best bet. When you buy a home, you’re building equity opposed to paying someone else’s mortgage for them. If the market is still doing well when you decide to move, your property values could have risen as well, meaning a sizable profit when you decide to sell. The other perk to owning your own home is the freedom that comes with it. You can own animals, put up photos, switch the paint or carpet and add other personalized items that you may not have the option to while renting.

Ready to move forward and make the leap to be a homeowner? Keep in mind that applying for a mortgage is a lengthy and very detailed process. Lenders often require a 700-credit score or higher to provide an FHA loan, so prepare by reviewing your credit report often and checking for inaccuracies. Also, make sure not to shuffle money around since lenders will want several months of bank statements. House hunting can be a fun and exciting time in your life so enjoy it!

If you’re looking to buy or sell your home or other real estate property, United Country Real Estate has more than 4,000 professional agents ready to serve you. Call 800-999-1020 for more information.

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