Five questions every potential buyer should ask when deciding whether to rent or buy a home.
Today is a tempting time to buy a home with interest rates and prices at their lowest levels in years. Deciding whether to buy or rent can be complicated, and potential homebuyers have a lot to consider this summer. Consider these key questions to help shoppers make wise financial choices when considering buying a home.
1. How much can you afford to put down? Can you afford the monthly payment? A mortgage down payment of 5 to 20% of the selling price is typical, but can vary depending on the situation. The size of the down payment will impact the monthly cost. Assess your financial health, and consider if you can then afford the monthly cost.
2. What other debt do you have? Consider all of your current and expected financial obligations and ensure you are able to make all the payments. Aim to keep total rent or mortgage payments plus other credit obligations fewer than 35 to 40% of your monthly income. If you can't keep payments below that, you will be better off renting an apartment in Roanoke, VA for a while.
3. What is my credit score? Can I qualify for a good interest rate? A high credit score indicates strong creditworthiness, which qualifies you for better interest rates on a mortgage. Maxing out your credit lines and paying bills late will lower your credit score, and the impact of a credit score on interest rates can be significant. If your credit score is low, you may want to delay rent from an HHHunt apartment home, we report on-time monthly rent payments to credit agencies. This helps you take steps to raise your credit score.
4. How much will real estate taxes, monthly maintenance or other fees cost? Owning a home means you will have to pay real estate taxes and other costs like insurance and maintenance. Remember to factor in these costs and incentives. Keep in mind that renters do not have these costs.
5. How many years will I stay here? Generally, if you plan to live someplace for 7 to 10 years or so, it makes sense to buy. Yet, renters have greater flexibility to move as they don't have to worry about finding new tenants. So, if you are staying short term or you don’t know how long you will stay, consider renting.
If you are interested in renting in Roanoke, contact Honeywood Apartment Homes.
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