Is it Time to Reconsider Your Rent?
The cost, commitment and confusion that can accompany the homebuying process are enough to give anyone pause about making the leap from renter to buyer. But for those who believe owning a home remains a matter of when, not if, now could be the time to reconsider your decision to put it off any longer.
Falling interest rates and rising rents may be making the path to homeownership a little less daunting, while the upcoming spring selling season will likely increase your buying options. Keep reading to find out if saying ‘goodbye’ to your landlord and ‘hello’ to to owning a home makes sense for you.
Your Money May Go Further
Since late in 2018, mortgage rates have been trending downward and continue to be near historic lows. In fact, rates reached a three-year low in early February 2020.
For prospective buyers, lower interest rates can make buying a home a more realistic possibility. Paying less in interest can reduce monthly mortgage payments or raise the amount they can borrow. If cost has been your primary obstacle to transitioning from renter to owner, it might make sense to speak with a lender and rerun the numbers. You could be surprised at how much your options have improved.
Don’t forget to factor in how your rent may change in the future as well. While home prices and construction costs have been increasing in much of the country, rent has been rising even faster in many places. The experience of continually-increasing rent can be a frustrating counterbalance to the flexibility leasing offers. Homeownership allows you to benefit from an increase in value while enjoying the stability of a consistent monthly payment.
Owning May Be a Better Fit
Eventually, renting becomes as much a lifestyle challenge as it is a financial mistake for many people. When priorities shift toward starting a family, putting down roots in the community, or embracing a more permanent plan, it often begins with the purchase of a home.
A predictable career path, long-term relationship and financial security can all be signs that a change in your housing strategy is overdue. Have you increasingly wished for more space, inside or out? Are you eager to customize your surroundings to reflect your style better? Has your financial discipline resulted in a more substantial savings account than you’ve had before?
The Spring Advantage
If any of those sound familiar, you may not realize just how ready for homeownership you are. It may also surprise you that starting now can simplify your search for a home and a mortgage. The busy real estate season is nearly here, meaning an increase in options and a better chance to find the perfect property.
And with tax return deadlines right around the corner, much of the documentation that lenders will want to see should already be close at hand. Gather your W2s, 1099s and 1040, take a look at your credit report, and grab your bank statements and rental history to get started. Then get ready to join the overwhelming majority of homeowners who say buying a house is the best decision they ever made.
Let the loan origination specialists at Open Mortgage lead the way to your first home. Visit OpenMortgage.com or call today for more information.