Renting Vs. Buying A Home – What Should I Do?

Purchasing a property can be a major way to substantially boost your financial security because as you start to make monthly mortgage payments, your home begins to build equity and becomes an invaluable financial asset. The real estate market is ever-changing, and the prices of rent and the cost of homes and the cost of borrowing money continues to shift, leaving many people to wonder, should they continue to rent or make the commitment to purchase a home? If you are located in and around the areas of West Palm Beach, St. Pierce, or Tampa Bay, Florida, and have questions about the right time to buy a home, CTC Mortgage can help. Continue reading to learn more about the process of transitioning from renting to buying a home.

Identifying The Right Time To Stop Renting And Become A Homeowner

When evaluating your decision to stop renting and purchase your own dwelling, there are several factors that are important to consider. If you still currently are a renter and your landlord continues to increase your rent, it becomes more and more difficult to save the funds to buy a property. When increased rental costs begin to feel like a poor investment, this could be a sign that you’re ready to take the next step and pay a mortgage. If you have a high credit score, this could also signify that you’re ready to buy a home since that will lead to better mortgage rates. Additionally, having a low debt-to-income ratio, (or DTI), is another factor that illustrates you are ready to be a homeowner. A low DTE demonstrates that the amount of debt you owe is currently manageable to your income, and will make your chances of qualifying for a home loan better.

Making A Down Payment On A Home

One factor that poses a barrier to many people becoming a homeowner and to continue renting instead is the looming reality of affording a down payment on a home. The amount you will be required to make for a down payment is dependent on the kind of home loan that you qualify for; luckily, there are several programs available that offer financial assistance with both a down payment and closing costs, including VA, FHA, USDA, and some conventional loans.

Being Prepared To Become A Homeowner

When you determine that you are ready to become a homeowner, it is important to make sure that you completely understand all of the financial obligations involved in obtaining a mortgage and buying a property. First, in order to understand the type of home you can afford and the amount of money to borrow, you will need to evaluate your monthly income amount, the current value of your savings and assets, and the amount of debt that you owe every month. In addition to these costs, you will also want to ensure that you have adequate funding saved up for any potential issues that arise with your home, such as repairs, water leaks, roofing problems, new furniture, broken appliances, etc. If you are ready to become a homeowner in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.