Wow! With the cost of rent rising have you ever thought about buying a home? It is important to weigh the pros and cons of renting vs buying. Credit scores are a factor in buying a home, but there are many different programs for future home buyers can help them get approved for a loan.
According to a recent report by Zumper National Rent Index, the average rental payment for a one bedroom apartment is $1,143, and for a two bedroom apartment $1,358.With the cost of rent rising on average from .4 to .7% for the third month in a row, have you ever weighed the benefits of owning a home?
Rent vs. Buying – Questions to ask yourself
Renting vs. Buying is a huge debate for many, whether you are single, have a family or you a single parent family. Some things you may want to consider are….
- How long will you stay in the home? Purchasing a home is a great way to gain equity, building equity isn’t an overnight process. It does require you to stay in the home at least on average of 5 plus years.
- Will you be able to handle the home repairs? Home-ownership comes with a lot of responsibilities, and one of them is the up keep of the home. Make sure you are prepared to maintain the property and anything that may break.
- If you decide to remain renting, how much will your rent increase over the next few years? With the average cost of rent continuing to rise each year, it may be good to keep in mind this may continue.
- What is my Credit Score, and will I qualify for a good interest rate? A good credit score is important when trying to get the best interest rate possible.
Owning a home can come with lots of advantages and disadvantages. Some major advantages are earning equity, belonging to a community, tax benefits, and the ability to decorate the home to your desire. It is always a good idea to weigh the pros and cons before jumping right in.
Just like owning a home, renting has some great advantages too. If you are unsure where you want to find a permanent residence renting is always a good choice, renting is great for those who don’t want to do the upkeep on a home, if you are financially secure in your job, or just not quite ready to take the financial burden of taxes, mortgage insurance.
It is important to know if home ownership is your American Dream, but you feel your credit just isn’t where it needs to be. According to the most recent FTC report 79% of all credit reports contain errors, be sure to review your reports, stay update and active, and don’t hesitate to reach out to a professional for help.