Reasons for Renting vs Buying a Home
You shouldn’t buy a home if:
- You don’t like fixing things. When you rent, you get a built in maintenance plan!
- You don’t plan on staying in a home for at least 5 years. Houses increase in value, over time. In the current economy, it’s going to take a few years before most areas appreciate in value again.
- You don’t have enough cash for a down payment or at least 3 months worth of mortgage payments saved up. You want to give yourself the best possible chance to succeed in homeownership.
Buying a home is the American Dream, but if you’re not personally & financially ready, it can be a nightmare.
- You’re not sure your job is secure.
- Your credit is damaged. You’re better off taking six months to a year to improve your credit before buying.
- You’re not ready to commit to a city or neighborhood.
Use the time that you’re renting to get to know some neighborhoods by walking or biking around them.
- You want to live in an area that is more expensive than you can afford to buy right now.
- You’re not sure your current relationship is going to last. It can be very difficult to figure out who’s getting the house, how they will buy out the other person’s share, and how to get the other person’s name off the loan and the deed if there’s a break-up.
Plan to buy in a year or less? You should meet with a Mortgage Professional soon to create a plan to get your finances in the best shape possible. See Tips for Finding a Great Mortgage Professional.
Thinking of buying a home in the Portland, Oregon area? Checkout our First Time Home Buying Classes!The Benefits of Renting vs Buying a Home,
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