Eight Signs It’s Time to Stop Renting and Buy a Home

While renting a home has become an affordable means of living, most home renters are under 35, with almost 87% of renters being high school graduates. This is because most renters stop renting and buy a home when possible. According to Statista, homeownership rates have started growing in the past years, reaching 83.5 million.

X Signs it’s Time to Stop Renting and Buy a Home.

The biggest problem with renters is finding the right time to stop renting and buy a home. Living in a rental property for years has left them unsure when to move on. Fortunately, we have listed eight signs it’s time to stop renting and buy a home.

1.      The Rent is Getting Expensive

The main reason why so many stop renting and buy a home is that renting is more costly in the long run. While renting a home was done to avoid spending tremendous amounts on buying a home, it has now outweighed the latter.

Data collected by Homesnacks shows that New York has become the most expensive place for renters. Additionally, The WashingtonPost expects home prices to fall in the coming years.

When such conditions start to appear, you can see them as a sign that it’s time to stop renting and buy a home.

2.      You’ve Cleared Your Dept

Most renters do not buy a home because they still have debt left to pay off. However, with over 340 million Americans in debt, mortgage companies know you can use the help.

Mortgage companies now allow a certain debt-to-income (DTI) ratio to qualify for a mortgage. Your DTI shows how much of your monthly income is being used to pay off debts, and the lower the DTI ratio, the higher your chances of getting dept.

Hence, while not having any dept would be great, you do not need to be completely free of it to buy a home.

3.      You Have a Stable Source of Income

A stable career can help you climb the social ladder in more ways than one. A stable and long-term career increases your chances of getting a loan and makes you financially stable.

Additionally, a stable career means you are not leaving anytime soon and are ready to settle down. When settling down, it’s best to settle with a house than with a rental property that is not yours.

Similarly, if you have your own business that has reached a point of earning a stable profit, then your next step is to buy a home.

4.      You Can Pay for a Down Payment

One of the most significant signs that you should stop renting and buy a home is when you can afford to start. Having enough for a down payment provides many benefits when buying a home.

A down payment will lower the loan amount, and a lower loan means that you will pay less of the extra money. There are also some chances of reducing the interest rate if you pay a down payment which increases your chances of getting a loan overall.

Generally, you must have enough to pay about 20% of the total price as a down payment. If you have enough saved, you can carry on with the home-buying process.

5.      You Have A Good Credit Score

Your ability to buy a house revolves around your credit score. A credit score represents how capable you are of paying bills on time. The higher your credit score, the better your chances of buying a home.

A good credit score of anything above 690 provides you with additional financial benefits. You can bargain for a better mortgage loan and a lower interest rate.

If you are close to an ideal credit score, there are many ways to improve it to increase your chances. Getting an excellent credit score is a more significant sign than any that it’s time to stop renting and buy a house.

6.      Lower Mortgage Rates

Mortgage rates are at an all-time low, and low mortgage rates are clear signs of buying a house. Mortgage rates refer to how much interest you must pay when taking out a mortgage loan. The mortgage rates differ based on how long the mortgage is, which can either be a 15-year or 30-year mortgage.

7.      You Have Found a Good Home

Choosing a home is the first step to buying a home. While the most important thing is still financing it, your entire effort can feel worthless if you do not find the right home. However, if you find the perfect home, you must grab onto it before it slips away.

If you have a home in a secure neighborhood with all the things you like, such as parks, restaurants, and entertainment, then it’s a sign that you must buy that house. Similarly, finding a house at a low rate and in perfect condition means you were destined to own it.

8.      You Found a Great Real Estate Agent

A great real estate agent can sometimes be the only sign you need to stop renting and buy a house. The right real estate agent will help you every step of the way to buy a house. They can help you find a house, adjust your finances, help get a mortgage, and make the entire process easier.

Having a great real estate agent, you can lean on when you want to stop buying and buy a house can be great emotional and professional support.

Contact Robert DeFalco Realty

There is no place like home. If you are in New York and want to stop renting and buy a house, contact Robert Defalco Realty. Robert DeFalco Realty has over 35 years of experience in real estate and has an army of skilled and trained real estate agents that will work hard to ensure you buy the perfect house.

Call Robert DeFalco Realty at 718-987-7900 or visit the offices in New York. You can also fill out a form online, and a real estate agent will get back to you.