If you have been renting a home, you may consider buying one sometimes. There are definitely perks of having your own home to do what you wish with. However, taking on a mortgage can also be a burden. If you are trying to decide to rent or buy, realtor.com helped compile some signs that are good reasons to rent your home.
1) You have recently switched jobs.
“Lenders prefer to see that a home buyer has two years of stable employment in the same industry—unless the home buyer is just out of college, which carries special circumstances,” says Ginger Wilcox, chief industry officer at the mortgage marketplace Sindeo.
2) You are still compounding savings.
Some down payments are 20 percent of the home price. If that wipes our your savings account, then it will be difficult to get a mortgage from lenders. If you are still building your savings account, that might be one of your best reasons to rent a home for a bit longer.
3) The timing isn’t right.
Starting to pay a mortgage is a financial commitment. It can cause stress or a lifestyle adjustment, even if you are financially ready.
“Not only do home buyers have to look for whether or not they can qualify for a loan, they need to look at other areas of their personal and financial life to determine if buying now is the right decision for them,” Wilcox says. “If making mortgage payments is going to take away a lifestyle they enjoy, cause too much stress to stay in a job they hate, or further stress an unstable relationship with a co-signee, perhaps it is better to come up with a homeownership strategy now to find the balance in the future.”
At RE/MAX Paradise, we have beautiful homes in Miami to either rent or buy. Our agents are happy to help you make a decision that is best for you!