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A lot of us generally agree that buying a home makes more sense than renting a home but not always. There are a number of a occasions when renting makes more sense.
Cost is one of the biggest factors. Read this article that was written by chief economist at Trulia, it talks a lot about how buying a home is cheaper than renting and it should help you make a better and more informed decision http://trends.truliablog.com/2012/09/rent-vs-buy-summer-2012/
If you’re not certain about your job and/or source of income – don’t buy a house. If your company is in the process of downsizing, you should think about the rather unfortunate possibility of you being laid off. If that were to happen, how difficult would it be to find another job, and one comparable to what you have now? And you can’t just think about job security, either. Sometimes positions with companies will force you to move to different parts of a state, and sometimes even the country. Is there a possibility that you will have to relocate? If so, you might want to hold off on buying a home.
Having a high debt ratio of 45 percent or more can mean that you might not qualify for a good loan and will have to pay a higher interest rate. If you have a lot of debts (credit cards, student loans, etc.) then it may be wise to check with lenders first to see if you would even be eligible for a loan that you could afford. Waiting a little bit and paying down your debts is always a good idea.
Maybe you don’t like the idea of having to keep up with things like mowing the grass or dealing with leaky pipes. Certainly, with renting these things are much less of a nuisance because of the fact that your landlord is the one who has to deal with them. If you own a home, those responsibilities fall on your shoulders. Not everyone knows how to fix those kinds of things themselves, or have a desire to tend to the upkeep of lawns and washed windows. And it can be costly to have an outside service come in to take care of things for you. Neither lawn nor repair services are cheap. Think about buying a home twice before making a move.
Finally, one of the big determining factors can be your credit score. A FICO score of about 620 and up is what’s needed if you’re going to be getting a decent interest rate for your mortgage. Anything below that and you’re looking at raised rates and high monthly payments, which is not what you want. If you happen to be below that score, you run the risk of having to pay a higher interest rate. Talk to a couple lenders that will advise you on what to do.
Determining whether or not you should buy a home or rent a home instead can be a difficult decision. On the one hand, owning a home may seem like something you want to do. On the other, owning your own place can have some serious drawbacks if you don’t have good enough credit or you’re uneasy with the thought of having to deal with some potentially major maintenance issues yourself. Ultimately, it’s important to take a moment and think about the pros and cons of buying a home. Don’t hesitate to call an experienced Realtor to discuss your options. If you do that, you’ll make a better informed decision that is right for you.