Looking for a place to live? You might be considering whether it makes more sense for you to rent or buy in your current situation. But how can you come to a decision that makes sense for you and be completely sure it’s the best route to go for your current life circumstances?
Here are some tips from an experienced realtor in Alpine, TX regarding questions you should ask yourself so you can make a better, more informed choice.
Can you actually afford to purchase a home?
This is going to be the most important question you can ask yourself when making this decision. If you can’t afford to purchase, then the rest of the questions don’t matter. Keep in mind that there are more costs than just the monthly mortgage payments you need to consider—otherwise, it would almost always be cheaper than renting. You must also consider the property taxes in your area, the down payment you’ll need to make on the house, the interest rates you’ll have to pay on your mortgage loan, the closing costs and the potential PMI you’ll have to pay if you aren’t able to make a large enough down payment.
How is your credit?
Potential lenders will take a good look at your credit score to determine if they’re willing to lend to you and how much they’re willing to give you in a loan. You’ll need a credit score of at least 620 for most lenders to be willing to accept your application, and to get the lowest interest rates you’ll probably need a score of at least 740.
Do you plan to stay in the area?
If there’s any chance you’ll be relocating any time soon due to anticipated career or life changes, a home purchase might not be your best option—selling a home takes time, and it can be difficult to break even if you have to sell relatively quickly after you purchase. There is always the option to rent your home out if you do end up needing to move, but keep in mind this requires a lot of commitment on your end as a landlord.
Are you willing to handle the general upkeep associated with owning a home?
Be honest with yourself when it comes to this question. Yes, homeownership is rewarding in some regards, but you also need to keep up with regular maintenance and be able to make the surprise repairs that come up from time to time. You aren’t going to be able to text your landlord and let them take care of it if something goes wrong—that becomes your responsibility. This means you should always have some cash stored away in case an emergency occurs and you need to make a sudden repair.
For more information about the factors you’ll need to consider when deciding whether to rent or purchase a home, contact Carpenter Real Estate to speak with an experienced realtor in Alpine, TX. We can guide you through the process of buying a home to make it as understandable as possible.