Are You Ready to Stop Renting and Buy a Home?
At some point or another, many renters may decide that it's time to buy a home. Often, there are signs that it's time for a renter to become a homeowner. Recognizing these signs can help a renter start working on this goal as soon as it becomes apparent. Here's what you need to know.
Signs Its Time to Buy
There are many different signs that it's time to buy a Parson North home. Below are some of the most common reasons that renters eventually decide to become homeowners.
You Want More Space
Though this is not always the case, apartments tend to be smaller than houses. Renter's often need more space as time goes by for additional furniture, exercise equipment, additional occupants, pets or a variety of reasons. Renters may also need outdoor spaces that may not be available in a rented home or apartment.
You Want To Invest
Renters pay for their apartment every month. The money goes to the landlord for the right to live on the property. Homeowners make rent-like payments, but to a mortgage. These payments build equity. Once the house is fully paid off, the homeowner may sell for a profit. Since real estate tends to appreciate over time, many buyers make a profit when they sell their home.
This makes buying an actual investment that can pay off down the road. It is not so with renting. A renter can never get their rent money back after leaving the apartment.
You're Tired of Apartment Life
Apartment living comes with a very specific lifestyle. Neighbors are close. Sounds can be heard through walls. Parking spaces, if available, can be tight. There may be communal outdoor space, but private outdoor space is small and rare. There is no ability to remodel, spread out or make changes. The renter is dependent on the landlord for maintenance and apartment updates.
For some people, this is acceptable for a time, but eventually it becomes tiring. Homeownership is very different. Homeowners have their own space and can make many changes to their house without seeking permission. After years of living in an apartment, many people welcome these differences.
Do You Have What You Need To Buy?
Before a renter can turn into a home buyer, they must have what it takes to buy. For example:
- Savings. Home buyers must have the ability to make a down payment (3.5% for an FHA loan or up to 20% for a conventional loan), pay for closing costs and pay for moving expenses after buying.
- Good credit history. The better the credit history, the better the interest rates.
- Low debt-to-income ratio. Buyers need a low enough debt-to-income ratio to qualify for a loan.
If the renter has all of these things, then it may be a good time for the renter to turn into a buyer.
How to Get Started
In order to get started buying a home, some things will need to begin. If you're a renter who would like to buy, start looking at local listings and contact a real estate professional to discuss what you're looking for in a home. At the same time, talk to lenders to get pre-qualified and then pre-approved. Once you've got a pre-approval and you've identified the homes that you find most enticing, your real estate professional can take you out for home showings.
Working with a real estate professional helps. Your real estate professional can help you get started with the process so you can be a buyer in a matter of months.