Buying vs. Renting

Topics this blog covers:
1. Considerations to make when buying
2. Buy / Rent Decision
3. Qualifying for the best loan

Considerations to make when Buying
Preparation
- Getting Credit Together
- Know Credit Score (http://www.annualcreditreport.com)
- Annual Credit Report does not contain the FICO however it does let you know all standings with companies that you have credit with.
- Link to <
- Plan out budget and save up for closing costs.
- Mortgage typically should not be more than 25 - 35 % of your total monthly income.
- Know the details of your loan (requirements and stipulations)
- Do your research on the location that you are looking to buy. Research the growth of the area as well as research property value over the past few years.

Buy / Rent Decision
Renting
- Free of major maintenance
- Not committed to staying outside of terms of lease
- More freedom to move
- Free of property taxes and less expensive insurance

Buying
- Build Equity
- Interest from the loan is tax-deductible if it is your primary residence
- Monthly payments are typically stable if you choose a fixed rate loan
- Build a sense of community with your neighbors
- Family and friends can typically live without restriction

Qualifying for the best loan
According to the link below the two major factors that lenders consider when qualifying for a home application are ability and willingness to repay the loan.

Two Key Factors in Qualifying for a Home Loan

Recommendations to obtain the best rate/conditions for the loan
- Pay down any outstanding debt
- Do as much as possible to increase your income (second job)
- Pay your bills on time and in full
- Consider buying your home before buying a new car (as this will reduce your liability)