Should I buy or rent?

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Owning a home is a financial decision which depends on your lifestyle. People who get married, start a family, expand their family,or increase their income, often prefer to buy a home since it gives a true sense of belonging and security.

Here you can find:

  • Evaluate your need
  • Benefits of buying
  • Ready to buy?
  • Tools to help you decide

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Evaluate your current situation

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  • What savings do I have?

Evaluate your savings and determine if the amount is enough to purchase the property you are looking for. Even though there are products that offer up to 100% of financing, consider that you will need around 10% to 15% of the properties sales price as savings to cover closing cost, down payment or other cost associated with the transaction. 

  • What is my monthly income?

Some examples of income you may use to qualify are salary, overtime and pensions among others. Income should be verified as received during the last two years and should be identified as to likely continue. 

  • What are my benefits as an owner vs. tenant?

Buying has many advantages. It is an excellent long-term investment. Monthly mortgage payments can be seen as a savings which will allow you in 20 or 30 years own an asset that is worth a lot of money. This will also allow if necessary, for you to use your home to finance retirement or other important expenses.

Renting also has its benefits. When you rent, landlords cover expenses such as home insurance, taxes, maintenance and community expenses. Although they typically reflect a higher monthly and maintenance payment, these are not obligations of the leaseholder.

  • How important is it for me to have my own home?

While the view, decoration, location and not feeling tied-down may be important for some people, others feel it is much more important to have a home of their own. Determine what is important for you, and if it is having your own home, here we are!
 

Benefits of paying a mortgage vs. renting

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  1. When you rent, you pay your landlord's mortgage. As a homeowner, you pay your own mortgage and invest your money in your future capital asset.
  2. With good interest and financing offers, your mortgage payment may be less than your rental payment.
  3. You can modify the house, making improvements or extensions as you wish.
  4. Benefit from federal, state and municipal government incentive programs to subsidize the financing of your primary residence.
  5. When buying a property, you are creating home equity.
  6. It is an investment for your and your family's future.
  7. Interests you pay on your mortgage are tax-deductible.
  8. You avoid uncertainties related to contract duration, monthly payment increase, or contract renowal.
     

Is it time for a home purchase?

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Before making the decision, you should consider if it is the right time to buy a house. A good initial interview with your Loan Officer will help you determine your ability to buy and pay a mortgage, as well as inform you about the different financing alternatives to make the purchase feasible.

These steps will help you make a purchase decision:

  1. Check your credit score and history
    • Your credit score is one of the criteria considered during your mortgage application evaluation. Check and access your credit report before signing a purchase agreement. By doing so, you will obtain a more accurate product and interest offer, and you will be able to identify the factors that negatively impact your credit. 
  2. Determine the area where you want to live
    • Visit the area to identify and become familiar with its pros and cons.
  3. Make a list of preferences and organize them by priority
    • Along with your family, list the most important things in terms of location, property condition, price, and amenities.
  4. Know your budget
    • Determine your capacity to meet monthly payments, closing expenses, and to make a down payment before exploring the market. You may contact one of our Mortgage Consultants to be pre-qualified.
  5. Search for information
    • Once you select the area where you want to live, look for information about that market in order to negotiate a good offer with the seller.
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