Renting? You've Got to be Kidding Me!

Many Renters believe they cannot afford to purchase a home. The usual reasons are not typically valid. For example, many renters feel their credit has suffered in some way or they can’t qualify for the monthly payment of a mortgage. Some even assume the monthly mortgage payments will be too much too handle over their current rental responsibilities. It’s so much easier than most people think to buy a home today. In fact, with the financial crisis currently setting a gloomy mood for the real estate and mortgage industry, it is the most fabulous time for 1st time homebuyers to take advantage of the best opportunity they may have ever had to purchase a home.

While it is true that a borrower’s credit history must be in decent enough shape for one of the loans available for 1st time buyers, in most cases there is one that will fit into each person’s profile.

A lot of first time buyers haven’t realized yet that they can pay about the same monthly mortgage payment as they are currently flushing down the toilet for rent. So, with the possible tax benefits of homeownership, it may be cheaper to own a home than to rent.
There are many purchase options for the 1st time homebuyer. Some of our favorites are Virginia foreclosure purchases. Many programs, such as HUD or VHDA, can offer great financing as well as incredible home prices for the first time homebuyer to take advantage of.

Owning a home is not only a lifelong dream for most people, but it is crucial to retirement survival. First time homebuyers may not be thinking about this right now, but a thirty year mortgage needs to start as early as possible. By planning adequately, you can have your mortgage paid off in time before that set retirement income starts. Retirement income, social security, and even annuities are not enough to cover future rental increases. No one really wants to live with their kids. Do you?

First time homebuyers need to look for specialists to help them so they can get the best bang for the buck. For example, if you are interested in buying a home well below its fair market value but you need it to be in good condition so you won’t fail to close due to conditional loan requirements, then you should only work with a foreclosure authority. Additionally, first time homebuyers need a lender and real estate agent that are familiar with their particular financing types. These specialists will understand what homes you can consider so you can avoid properties without adequate overall condition. Many buyers ask for a “fix up” home since the perception is a lower cost home. Unfortunately, many buyers don’t have enough money to buy a home without needing a mortgage. All mortgages have requirements that must be adhered to.

A lot of the foreclosure properties are in good condition and are loan worthy. Many of the foreclosures have been inspected to allow potential buyers the opportunity to uncover any repairs or conditions the home may need prior to making a purchase commitment. Also, most foreclosure companies allow for home inspections to be conducted and allow for that contingency.
On the other hand, just because a property is a foreclosure doesn’t make it a good deal. The sales cost may be low, but the buyer must consider the amount of money needed to return the home to a livable condition. Having an agent that is also an investor is helpful so you can properly assess these important variables accurately through their experienced eyes.

Considering the future cost of renting a home allows individuals to see how much money they are wasting every month. When renting a home, the money will never be recouped. It is like throwing money away every month. Even if the mortgage payment increases, the financial benefit is greater. Considering the average renter spends more on their monthly rent payment than a mortgage, it just doesn’t make sense to continue on this path.

Hundreds of thousands of foreclosed properties are waiting for a new owner. Many renters have found they can find a distressed, foreclosed, or HUD owned property for a bargain giving them plenty of room to turn their purchase into a home.

For more 1st time buyer information, click here.