Renting vs Buying
In today's market there seem to be a limitless list of advantages to buying vs renting. That said, there are also a number of things to consider. The advantages that most people find in home ownership are:
There are also some risks and unforeseen factors that will affect you in a more consequential way as a home owner. The VA loan program has requirements that are very good at making sure veterans can afford the homes they purchase. Even with no-down payment, and other programs, very few people statistically struggle, as with anything, there are many things which can impact your budget including job loss, health issues, family changes, and literally dozens of other things. But since you own the home, the mortgage is not optional and still needs to be paid.
With a little saving and planning you can offset the potential obstacles below and make your experience of owning a home less stressful. Here are some things to plan and prepare for:
New additional monthly expenses: Your mortgage payment can adjust over time. The principal and interest portions don't change (assuming that you have a fixed rate mortgage. That said, property taxes and insurance p can change each year along with water and trash bills that you may not have had to pay as a renter. Maintenance costs are also items that you will need to budget for. Appliances, HVAC, plumbing, electrical and other items can all be costly items to upkeep and repair. It is important that you budget and plan ahead for these expenses.
Surprise relocation may be more difficult and may impact you financially as well if you own vs renting. Active duty military members can break leases under certain circumstances without incurring a financial penalty as renters but homeowners needing to move cannot simply walk away since they own and owe money on the home without much more serious financial consequences.
Nobody plans to divorce, face a health crisis, lose a job or any number of financially draining life obstacles. Regardless of why late payments can have a significant impact on your credit and financial profile. As you consider home ownership, it is important to be honest with yourself as you assess your situation, your savings and as you decide if you are ready for this move. Done right, owning a home is one of the most fulfilling and rewarding things you will do.
Are you ready to talk about the next step? Do you have questions about what to do next? Give us a call. We help Veterans every day to make their goals and dreams of owning a home a reality.