When it comes to a house, should I buy or rent? It all depends on your personal circumstances, but there are three important questions you may want to ask yourself before you make your decision:
Can I afford to buy a home? When considering the costs, it’s important to remember that in addition to the monthly mortgage payments of principal and interest, there are taxes, homeowners insurance, and ongoing costs to maintain your property.
How stable is your job? It’s a good rule of thumb to plan on being in a home for at least five years to make it worth the down payment and closing costs. Do you feel confident you will continue to be employed for at least 5 years? With our current weak economy, it may be unsettling to face potentially being unemployed and having a mortgage. If you choose to rent, you would have the flexibility of moving if needed.
What is your credit history? Financial institutions and landlords both check your credit, so it’s a good idea to be aware of your credit standing as it will be a factor in determining if you qualify for a home loan or lease.
After answering these questions you should come away with a clearer sense of whether to buy or rent. Always feel free to contact one of our friendly mortgage lenders: Michelle Knopf, Julie Jacobson and Tracy Engman.