Mortgage Advice

5 Questions to Answer Before You Decide to Buy or Rent

February 18, 2020

We’re just starting out on a new year, a new decade, and potentially, new questions to answer. For many, the biggest question of the year will be this: Should I buy or rent? In the spirit of helping our clients reach their homebuying goals and set themselves up for financial success, we put together a list of 5 questions to answer before you know if you’re ready to buy rent this year.

1. Do I/We Have Stable Sources of Income?

An uncertain job situation can be a major sticking point when considering whether to buy or rent. Potential to move, change in income or complete lack of income are all things you need to take into account. It’s important to be honest with yourself and anyone involved with the process when it comes to this.  Also, being able to demonstrate a stable job history on your mortgage application will indicate to lenders that 1) you’ve got a reliable source of income to repay the loan and 2) that you are committed to your career.

2. Where Do Your Student Loans Stand?

Just because you have student loans doesn’t mean you’re ruled out from homeownership. However, it’s important to know where you stand with your loans. Luckily, speaking with a mortgage professional at Ross Mortgage can shed light on your situation.

One example of an option for those still paying off student loans is this: If your loans are income based and you have a solid record of hitting your payments every month, you can still qualify for a home loan.

3. What Stage of Life Are You In? 

Not to get too personal, but are you expecting—anything? An engagement ring, a new family member or perhaps are big promotion? These factors can play a big role in deciding whether you should buy or rent. Think to yourself, “will this dwelling be right for me in 3 years? 5 years?” Depending on the answer, you might help yourself decide on if more permanent housing is right for you!

4. Have You Considered the Financial Benefits of Homeownership?

Have you considered what you might gain financially by making the jump into homeownership? It’s no secret that building equity with a home mortgage can be beneficial in the long run, but did you know that there are plenty of tax benefits to owning your own home? From property tax reductions to mortgage interest deductions, check out our blog post for more details before answering this question.

5. Have You Spoken to a Ross Mortgage Professional?

No? Stop what you’re doing and give us a call today! A phone call with a mortgage professional should be at the top of your to-do list when deciding what’s right for you. This will help you definitively communicate what you’re looking for in a home and can help speed up the entire process.

Did you answer no to question 4? Then give us a call today. We’re ready to help you out no matter which stage in the homebuying process you’re at.