Should You Keep Renting Or Is It Your Time To Buy !

Many of my rental clients will often ask me for my advice when it comes to them renting or should they take the steps to purchase their first home.  There are some specific questions you have to ask yourself when your deciding to rent or to buy.  

1. Do you have enough work history ? You don't need to have worked at the same place but you will want to have worked steadily for about 2 years for most loans, if your applying with a co-signer than your work history can be a bit less if the other person has a good work history. 
2. How is your credit ? The average credit score to be able to obtain a mortgage is about 625, running your own credit to make sure you don't have too much outstanding debt is helpful and it can also help you correct any information that might not have updated on your report.  
3. What kind of savings do you have ?  There are costs that you will have to be able to meet to purchase starting with the down payment, and closing costs but you also home inspections and an attorney. 
4. How much time do you have ? If your currently in a rental and your landlord is not open to you staying on a month-month basis you may not want to rush into a purchase because of those kinds of time constraints.  

Here is a great tool that Realtor.Com provides to help you decide if financially would be better suited to continue renting or making your first purchase ! Rent Vs Buy Calculator 

There are also ways around the financing is some instances, there are options of grants, down payment assistance, flexible mortgage options that can put buyers in a perfect position to buy.  

• State/Town Grants - These are most common in Condo Developments where the State/Town is paying a large portion of the mortgage - Here is a current listing where the actual price of the grant is contributing about $40,000 and the buyer in turn is getting a new construction 2 bedroom condo for under $250,000 - Courtland Square Condo Development
• Down Payment Assistance - There are some programs that will match what you are able to put down on a home, or larger programs that allow your down payment to come from your loan without paying interest on that down payment.  Here are 2 helpful links for down payment assistance: Long Island Housing Partnership Down Payment Assistance - SONYMA Down Payment Assistance 
• Mortgage Options - You have many different mortgage options you can add sellers concessions to help with closing costs, or choose a loan that is interest only, you also have mortgages that increase your payments as it progresses allowing you to pay more when you financially will be able to.  To find out more about your mortgage options, you can fill out the contact for to speak with a Coldwell Banker Mortgage Advisor.  

Of course their are pro's and con's to both so here are a few that you should think about when your deciding which is a better fit for you ! 

Pro's Of Buying 

• Creative Control - You won't have the limitations of decor since it will be your own home to do what you would like.  
• Investment - You are investing in your future with the current market conditions, buying will put you in a great position in the future. 
• Tax Breaks - You have the ability to take deductions that you ordinarily do not get simply just paying rent, even property tax has exemptions for just living in your home, and veterans as well. 

Pro's Of Renting 

• Flexibility - You have the option to move around into different areas, this is important for those who maybe are thinking about switching jobs you can move where your work actually is, moving for those who own can be more difficult. 
• Less Maintenance - The responsibility of general maintenance in most cases does not fall on you, those details are handled by someone else.