“Should I rent or should I buy?” It’s a question that that plagues many house hunters. Everyone’s situation is different, so there’s no right answer between buying vs. renting, but here are a few questions to ask yourself when making that decision.
Are you planning on being in the home long?
If you’re just needing a place to stay during a transition period of a few years or less, renting may be the best option for you. If you’re planning to settle down, buying may be ideal. If you’re going to be in one area for a substantial amount of time, you might as well have your monthly payments going toward something you own.
Would you be OK to stay where you’re at if things don’t work according to plan?
Buying a home is more of a long-term commitment. If you’re buying a small home to start and hope to upsize in the next few years, keep in mind that plans don’t always work out the way you want. If you weren’t able to upsize as soon as you’d hoped, would you be OK to stay where you’re at?
How stable is your current lifestyle?
If it looks like your job will be changing soon or your lifestyle will significantly change in the coming years, buying a home may not be the best option. You don’t want to be locked into a mortgage if your salary takes a huge cut.
Is a mortgage payment close to a rental payment? If it’s the same or close, it may be more worth it to buy. Again, you might as well have the money go into equity you own, not into a landlord’s pocket.
What kind of mortgage could you get?
If you’re credit is suffering at the moment, it may be better to rent for the time being. Even if you’re planning on staying in the area for a long time and your lifestyle will likely stay the same, and even if the costs of buying and renting are very similar, it may be better to rent for a little bit and increase your credit so that you can get a better mortgage and a better home. You could also use this time to save up for a good-sized down payment.
To see where you’re at click here to get pre-qualified today!
To see more tips check out this NYTimes article and this USNews article.
So what did you decide? Renting or buying? If you have any questions, we can help talk you through it and decide what would be best for you!
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If you want to learn about some financing options, or if you’re looking to get pre-qualified, contact Parker Turk at Sun American Mortgage Company: 602-616-3774.