Is It Better to Sign a Lease or Get a Traditional Home Mortgage?
Throughout the years, home ownership has been part of the American dream. While the financial turmoil of the late '00s put a traditional home mortgage out of reach for many, the real estate market has since stabilized, and buying a home is a more attainable goal. Are you ready to take the step from renter to owner? We've put together a list of questions to help you decide.
Have You Done Your Homework?
Although it's true the real estate market has emerged from crisis, home prices vary greatly from one area to the next. According to Business Insider, there is a $460,000 swing in median house prices between the most expensive and least expensive states. Do your due diligence. Talk to family and friends, review online listings and consult a real estate agent to see what housing prices look like in your preferred location.
What's Your Budget?
One benefit of renting is your housing cost is a fixed amount each month. When you buy a home, you have to allow for other fees and charges such as property taxes, homeowners insurance and association (HOA) dues. Some people tweak the formula a bit, but most experts agree on 30 percent of your gross monthly income as the amount you can comfortably spend on housing. This can be modified somewhat, depending on the amount of outstanding debt you're carrying.
On the flip side, there are some financial benefits, such as tax deductions and value appreciation, that don't come with renting.
Are You Likely to Relocate?
Do you work in the military or another type of job that requires you to move frequently? Is your family still growing? Since the real estate market is unpredictable, you can end up with a big loss if you have to relocate during a down period. Renting offers more flexibility, with leases often available on a month-to-month basis. However, if you're at a relatively settled point in your life, homeownership is the best way to put down some roots.
Is Maintenance an Issue?
When you rent, if a faucet springs a leak or the hot water heater goes out, there's no denying the convenience of a repair service being just a phone call away. As a homeowner, both parts and labor are on your dime. On the other hand, if you want to paint, put in new carpet or start a garden, you don't need anyone's permission. Renters accept a basic layout and decor with a narrow range of allowable modifications.
Contact Us for a Traditional Home Mortgage
If you decide home ownership is in your future, Clark County Credit Union offers a variety of financing options to accommodate your needs. Contact us at 702-228-2228, and let us help you find a traditional home mortgage to suit your needs.