The Benefits To Buying A Home Versus Renting

Dated: 11/11/2017

Views: 75

Image titleSometimes when I first start talking with people about buying a house their first comment is "We don't have money to put down to buy".  You don't necessarily need it and I think that's a common misconception.  There are programs in Arizona specifically designed to help people who don't have the money to put down to buy a home of their own for less money out of pocket than deposits for a rental house would run them.  

Typically on a rental that runs $1000 a month for example, you will owe first months rent, then there is last months rent, then security deposit equal to rent so you are up to $3000 for a house you'll never own or claim tax credits.  Then there are cleaning deposits that can range from $250-500.  If you have one pet the next deposit would be about $250 per pet plus maybe more per month for rent on top of restrictions for the breed you may own.   Then there is rental insurance added to that!  So you are paying around $3500-4000 for a home that will cost you $1000 a month and you will never see the monthly amount again and likely you'll see very little of the upfront cost either :(   You are literally investing in someone else's equity! 

So to buy a home where your mortgage is $1000 monthly, you will have minimal costs and many rewards.  You will need about $1000 for earnest money to go under contract.  Then you will need about $450 for inspections and another $450 for appraisal... So the total cost to invest in yourself is $1900!  Down payment assistance can pay all of your down payment or most.  Many of my clients come to the table with less than $1000 at most but again this is YOUR money going to YOUR future and not someone else.  You also claim the tax credits and get to have whoever you want in the home regardless of backgrounds with whatever number of animals regardless of breed in YOUR home!  You can paint any room any color and change any detail you'd like.  It's YOURS!  

Some common concerns we hear are those of worrying about repairs.  Yes the repairs become your responsibility but with my clients I always try to negotiate a home warranty to off set the cost of anything that may come up in the first year and you can renew it annually if you find it of value!  Another concern comes from those worried about their FICO.  I have lenders who can do a loan if you have money to put down with a FICO in the 500s.  Then VA can do a loan with a FICO of 600.  The next option is from one of my lenders and you could qualify for down payment assistance with a FICO score of 620 or higher.  The last option comes from another lender with down payment assistance with a 640 FICO.  All have their pros and cons which the lenders can explain when you reach out for your prequalification process to begin.  I don't pretend to be a lender so I let the experts handle that ;)  I ALWAYS recommend speaking to a lender even if you are months or a year or more out!  They KNOW what you need to do to put yourself in the best position to buy possible and they will give you the best advice after all they are the ones that will be handling your approval and paperwork!  There are times when paying things off can hurt you and there are times when you may not qualify for a tad longer than you think and you want to know all of that instead of being homeless ;)  

My goal with all my buyers and sellers is to put them in the best possible place I can to buy a home or sell a home and I give the best advice based on the market facts as I can.  I can comp your home if you are considering a sale.  If you are considering buying, I can give you my lenders info so you can start the process.  I always do what I can to set up my clients for success and avoid failure!  I've been very picky over the years establishing great relationships with lenders who will close on deals they say will close.  I also have inspectors who will find everything going on with a home so that you can decide if it's the right one for you!  I have all the professionals you need in order to make it a success with as little frustration as I'm able!  

I look forward to working with you and am excited you've decided to get started with buying or selling a home!  

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Jennie Holmes

"Jennie Holmes earned her license in Real Estate in 2014 after being apart of her dad's custom home building business for many years. She married her husband, Jason, in 2001 and they have 4 children-....

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