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At Primary Residential Mortgage, Inc. we’re big fans of homeownership—but we’re also fans of making smart, long-term decisions. In many cases, buying a home is better than renting, but it’s not a decision to take lightly. Below, we’ve laid out a few signs that it’s a good time to consider switching from renting to owning.
1. You’re craving more freedom
Renting gives you the flexibility to pick up and move more often, but in many other ways, it limits your options. Plus, if you answer to a landlord, there’s always a chance you’ll have to move on short notice if your lease doesn’t get renewed.
Homeownership offers more freedom, whether you want to paint your bedroom, dig up the grass and plant a garden, remodel your kitchen or invite guests over for the weekend.
2. Your income has increased or become more stable
Homeownership isn’t always more expensive than renting—in fact, sometimes it’s cheaper—but, it is a bigger financial commitment so income is important. If your income has recently increased or become more stable, you may be in a better position to take on the responsibility of owning a home.
Home ownership doesn’t necessarily cost more, in fact, in many ways it saves you money. But it’s more financial responsibility—so a healthy, stable income is important.
3. You’ve improved your credit
You don’t need perfect credit to buy a home, but if you’ve improved your credit score recently, you may be able to get a better interest rate on your home loan. That matters when you’re signing up for 15-30 years of payments.
4. Your rent has increased
As a renter, your monthly payment will likely increase year after year. At some point, the amount you’re paying in rent each month could equal or exceed what you’d pay each month with a mortgage for a similar (or even nicer) living situation.
If your rent has increased recently, it may be time to consider buying a home—especially if the rent hike was steep.
5. You need space for pets
Your pets are part of the family and you want what is best for them. In many cases, that means a yard or a larger home with more room to wander.
If you want to adopt a pet or give your current one a better home, homeownership may be a good option.
Plus, as a homeowner, you won’t have to pay that pesky pet rent each month.
6. You need more stability for yourself or kids
Homeownership isn’t always forever, but it does provide a valuable sense of permanence, whether you want to provide your school-aged kids with stability or put down some roots in a neighborhood you love.
7. You want to invest in something that lasts
Mortgage payments, unlike rent, go towards a potential lasting investment. While it isn’t a guarantee, many homeowners have equity within a few years of making the purchase. If you decide to sell or refinance after a few years, you might make a profit. And if you stay in your home until it is paid off, you’ll have a place to live without monthly rent payments.
If you’re ready to make the switch from renting to owning, we’re here to help.