Buying vs, Renting Real Estate: Which choice is right for you?
When it comes to Buying vs. Renting Real Estate everyone has heard the old line that renting is just throwing away money. But is buying really better than renting in all situations? The answer to this question depends heavily on individual reasoning, financial situation, and short-term and long-term goals. As an Arizona Real Estate qualified buyer’s agent, let’s break down some of these questions and find out if real estate is right for you.
Finances
The first thing to look at is pretty simple: Can you afford to buy a house? No matter how good a deal you find or how much property values are rising in your area, it just won’t be possible to buy a house if you’re already overloaded with credit card debt or can’t scrape together enough money for closing costs. While banks will often work with buyers to help them get adequate financing, it’s often a good idea to rent for a couple of years while you sort out any messy financial situations.
Additionally, understanding the various aspects of the lending process; what documents will need to be in order, what are acceptable debt to income ratios, what types of loans are available to you, and what dollar range can you be approved for are all part of the home buying process. Often times speaking with a mortgage professional can help you to determine your qualification status by completing a mortgage pre-qualification. Having the expertise of a knowledgeable real estate agent on your side can help you to prepare for the home buying process even if you are not yet able or ready to buy. [Read more…]