After the housing market crash, most consumers turned to rentals. After all, who wanted to try their hand at a mortgage? But, the housing market is recovering, and lenders are loosening the requirements, making it easier for a consumer to get a mortgage without losing their entire life’s savings in the process.
But, most consumers are still weary on purchases. If you are not sure whether or not renting or buying is right for you, it comes down to your finances, stress level, and just how much hassle you want on your plate.
Do You Care About Investments?
Homes are investments, which is still true today. If you are looking for a way to spread out your investment portfolio, buying a house will do just that. Sure you won’t see a huge profit or even positive equity for a while, but if you are looking for a long-term investment, real estate is still the way to go. You will have something to call your own, too, rather than putting rental payments toward someone else’s investment.
Can You Afford It?
Here’s the thing: You will always pay more in rent than someone who has the same house and pays a mortgage. Rental rates are higher, especially with the interest rates on mortgage loans being so low. That being said, there is flexibility with rent. You can pick up and move to something smaller or cheaper if you decide rent is too much; with a mortgage, it’s not so easy.
Will You Qualify?
If you can afford a house payment, then the next question is whether or not you will qualify for the loan. While mortgages are slightly easier to get, they still require you to have stellar credit. It is best that you go and get pre-qualified before you start shopping to ensure you will get approved for a loan.
Don’t Forget the Services
There are a lot of services you need to ensure you get a quality piece of real estate. From having someone do the title search to handling your title insurance, which protects your investment, Title Lab is here to help. We even offer escrow services so that you have someone handling your property insurance and taxes.
Contact Title Lab today to learn more about our real estate closing services or to schedule your appointment by dialing 305-440-4150.