Renting vs Buying
Renting Pros And Cons
- Mobility/freedom to move around
- Landlord pays for maintenance
- Does not require high closing costs
- No fluctuation in monthly housing expenses
- Allows you to try out different living spaces
- You don’t build any equity
- Limited ability to customize your living space
- Rent could go up over time
- Landlord might sell or decide to stop renting
- Limited sense of home stability/permanence
Buying Pros And Cons
- You build equity wealth over time
- Home values increase over time
- Unlimited freedom to customize your living space
- Tax benefits
- Sense of home stability/permanence
- Closing costs can be expensive
- Responsibility for maintenance and repairs, which require time and effort
- Less flexibility to move (at greater difficulty/expense)
Maybe it’s time to consider becoming a homeowner!
A few common questions asked by new homebuyers…..
- Why do I need a Pre-Approval before home shopping?
- Knowing your numbers and having a plan in place is the key to a less stressful home search. It is the foundation for the entire process. Hopes can be quickly dashed when what you thought you could buy and what you are qualified to buy do not match up. Knowing how much of a mortgage you qualify for, how much of down payment you are going to use (or at least have access to) and an estimate of closing costs in advance will make your search more productive and enjoyable.
- Already having the groundwork in place for your mortgage makes your offer on your potential new home that much stronger. When your offer is accepted is not the time to start the process.
- What kind of information does the lender need to Pre-Approve me for a mortgage?
- If you are purchasing or refinancing your home, and you are salaried, you will need to provide the past two-years W-2s and one month of pay-stubs: OR, if you are self-employed or retired you will need to provide the past two years tax returns. If you own rental property you will need to provide Rental Agreements and the past two years’ tax returns. If you wish to speed up the approval process, you should also provide the past three months’ bank, stock, and mutual fund account statements. Provide the most recent copies of any stock brokerage or IRA/401k accounts that you might have.