Should You Buy Or Rent A Home? Tips And Tricks To Find The Right Living Situation For You

Should I buy? Should I rent? Does it matter? What’s the real difference?

These are the questions I asked myself over and over before buying my first home. Buying a home is a great long-term investment, but believe it or not, buying a home isn't always the right choice for everyone. Not sure what you should do? Here are a few questions to ask yourself to help you decide whether it's best to buy or continue renting:

Are you planning to live in the same place for 3-5 years or do you need the flexibility to move around?

If you're planning on planting roots, at least for an extended period of time, buying a home is a great decision. It typically takes 3-5 years to see the serious equity gains that make buying a home a great investment. If you're in a place in your life where you prefer a more nomadic lifestyle, the closing and moving costs of buying and selling a home simply won't be worth it. You're better off renting until you feel more ready to settle down.

Is your financial situation in the right place?

Buying a home can mean great equity returns over time, but you need to make sure your credit and finances are in the right place before buying. If you have a credit score under 580, large amounts of personal debt, or aren't sure you can afford the occasional maintenance and costs of repairs that come with owning a home, it's likely best to wait. Here are some personal milestones I recommend all buyers hit before they dive into the home buying process:

• Credit score above 620

• At least 2-3% of the cost of the home in savings

• Pay down personal debts to a reasonable level

• Make sure you're working with an agent who will buy you a home warranty (I do this for all my buyers)

• Get prequalified with a mortgage lender

If you're interested in learning more about what it takes to buy your first home, contact me! I'm happy to answer any questions you may have and get you on the path to homeownership.