Tips To Help You Decide If You Are Ready To Own vs. Rent

 In Real Estate Articles

Choosing whether or not you are ready to purchase a home is arguably one of the biggest decisions you will ever make. Obviously, there are a lot of things you have to consider in order to determine whether you are ready to own a home or if it would be better to continue to rent one.

First of all, you need to consider your finances. You need to determine just how much money you can put towards a down payment without putting yourself in a financial bind. You also need to do some math and figure out how much money you can afford to pay every month. It helps to know that the mortgage on a home can be anywhere from 5 to 20 percent of what the selling price is.

When considering your finances you also need to think about what other kind of bills you are currently paying in terms of loans, payments, and debts. Obviously, you want to make sure you can handle all of your current bills in addition to purchasing a house. This is because there is no point in purchasing a home if you are going to be overwhelmed and struggle financially because of it.

It is also important to research the area you intend to purchase a home in. Obviously, some areas are going to be cheaper than others. If you are on a budget it helps to do research and figure out where those cheaper homes are located. When doing research you should also find out what your credit score is. If you have a credit score that is below 750, it is going to be better to rent a home until you are able to boost your credit score.

You also need to ask yourself if you are going to be able to afford the maintenance fees that come with owning a house. This included yard work, home insurance, possibly even a Homeowners Association Fee. There are a lot of bills and fees that come with buying a house that you do not have to pay when you rent. If you are presently struggling to make ends meet while you are renting a home, you are going to want to wait until you are more financially stable to purchase a home.