Why rent when you can own?
It is definitely way practical to buy a house than pay a lease, especially long-term, as real property values appreciate over time and offers a sense of financial security.
However, it involves challenges that must be considered before making the shift from being a mere tenant to becoming a home owner: qualify for a mortgage loan and possibly a down payment assistance program.
Your readiness and financial situation.
It would really depend on your situation and timing. It is an issue of readiness as well. You need to ensure the stability of your income, knowing you are earning regularly and your credit.
Three things to consider before buying a house.
1. Capacity to cover the down payment or qualify for down payment assistance programs. You are ready to buy a house when you can qualify for assistance of have some $$ saved.
2. Capacity to pay monthly payments. In most cases less than you are paying in rent.
3. Stable source of income
Your capability to qualify for assistance programs or pay the down payment and monthly house payments all depends on the stability of your income source.
When it comes to renting, the advantages are short-term, somehow temporary. For instance, your job requires you to travel most of the time or perhaps you are working on paying debt down or doing some credit repair, it makes sense if you rent for the meantime.
At the end of the day, owning a house is a fulfillment and an investment in your future, but the question is, can you afford it? Your mortgage lender and your Realtor can help you work through these questions. First time home buyer’s have lots of assistant programs available to them.
For young professionals, save early to be able to buy a house. Having enough savings makes it easier and less costly to buy a house when the time comes.