Just this week, we've answered this question many times for clients, and we thought we would write a blog post breaking down the topic of:
Why Rent When You Can Buy?
If you are currently living in a rental and have lease with your landlord, you may be thinking to yourself, why am I throwing all of this money away, for basically no return on my investment? In the Northern Virginia area, monthly rent payments are close to that of a mortgage for the same property and we would love to help you learn more about the process of moving from being a renter to a home owner.
Determine What You Can Afford.
It will take TIME to stock up on your savings for a down payment and because this is true for almost every buyer, it is super smart to research your options for purchasing.
"Among first-time buyers, 28 percent save for six months or less, while 13 percent save for more than five years."
Because of a large variety of programs currently available to home buyers, the percentage of a down payment needed can fluctuate greatly. The average tends to be between 15-20% of the purchase price. There are programs that can however, provide an opportunity for homeownership for as little as 3% (or even 0% down!).
Our preferred mortgage lenders are ready, willing and able to assist you in discovering what your purchasing power is! You may feel uncomfortable divulging every last minute detail about your financial status, and that's ok! You can obtain a summary of your options by simply giving some basic information to Kelly, Greg or Joe!
Don't Have Your Head In The Clouds.
What are you currently paying in rent each month? Don't get ahead of yourself and start looking at properties where your mortgage payment would exceed your current rent payment! If you are currently paying $1,000 in rent, speak with one of our lenders to determine what that means once you add in interest, taxes and insurance (a 'PITI' payment).
What Exactly Do You Want?
Do you want to garden, but can't because your landlord isn't ok with it? Do you really wish you could have a dog but it's against the tenant/landlord policies? Would more land/acreage make you happier, or would it be wonderful to finally have a covered parking space? Think through what you want, and compare that list against what you currently are offered from your landlord.
Think Outside The Box.
Feeling overwhelmed about your responsibility to pull your down payment amount out of thin air? Don't stress! does not have to simply come from your savings account. Gifts from family members can come in handy. Also? Save up that cash and do away with your morning coffee routine and even (ahem!) cancel the gym membership that you're not currently utilizing! Keep in mind that you will have closing costs and set aside some extra funds for that purpose. Consider holding a garage sale and ridding your space of excess items - all in the name of "closing cost funding" !
If homeownership might be for you, don't let the comfort of renting scare you away from exploring your potions! You are paying a mortgage whether you own or rent! You are either paying down YOUR mortgage, or the mortgage of your landlord!
To learn more about our services and hear from our satisfied clients, click here to read our testimonials!