Have you been in your current apartment for a couple of years? Do you have a steady job and you’re tired of paying rent? It may be time to consider buying a home as your next investment to start planning for your future and to make your hard earned dollars work even more for you.
If you are nervous or unsure where to start, we recommend that you talk to your local lender, someone who knows the area very well, to determine your price range based on income and current credit score. Many prospective buyers don’t know that you can buy a house with as low as 3% down and sometimes with 100% financing depending on your situation.
The word “mortgage” can sometimes be seen as a scary word, but it doesn’t have to be! We like to think of it this way: if you are currently spending $1,500 per month in rent for a 2-bedroom apartment, you can actually buy a nice home in a good neighborhood and pay a similar monthly payment and start building your equity.
So when is the right time? If you plan to own the home for about 4-5 years, if you like the area you’re in, if you want to customize your home to make it what you want, if you want to build your own equity and not someone elses, or if you want to build your wealth in a different way, then now is the time!
Is there ever a time where it may not be right? There may be times where buying a house may not be the best decision for right now. For example, if your credit is not great you will have an extremely high interest-rate or PMI. Also, if you’re planning to live in the home for less than 2-3 years, then homebuying may not be the smartest investment.
That said, there are so many options for home buyers and even for those looking to buy properties to invest in rentals. The important thing is to discuss your goals with your realtor and a lender to find options that will work for you.
If you are currently renting but thinking about buying and want to know your options, contact us to start the conversation.