How to Stop Renting and Buy a Home
Are you ready to stop renting and own your house? You have options available! Find out how to stop renting and buy a home with these easy-to-follow steps!
Nexstar Homes is dedicated to helping people who want to get out of their rental properties and into the home of their dreams. This guide is here to help you find out the quickest way to make that a reality.
Renting a home or apartment might be a necessity for some, but it is not something everyone wants to do forever. You won’t ever have as much control over your home if you are renting the space. You’re also susceptible to the will and regulations set by your landlord. These issues can be a hassle, but they don’t have to be a problem forever. This brief guide will help you learn exactly how to stop renting and buy a home. You can use these tips to help you stop renting someone else’s space and claim a home you can call your own.
Benefits of Buying a Home Versus Renting
You will find owning your own home to be more enjoyable than if you keep renting your space. The main reasons why you should stop renting and move towards owning your house include how you will make a long-term investment in yourself and your future.
Instead of relying on someone else and their property, you will have a place that is truly yours. You’ll have full ownership of the space after you complete all the payments on your mortgage. Plus, you could make a significant profit on your home depending on its condition and market if you ever decide to sell.
You could also spend less on your mortgage than if you were to rent a property. Rental costs are constantly increasing and becoming tough to manage in many markets.
A mortgage will come with a monthly price but could end up being less than if you were to continue renting. Some mortgage loans may also come with guaranteed rates that are more predictable, or they might have rates that can drop in value if the market changes.
You’ll also enjoy the privacy that comes with buying a home for yourself. You won’t be subject to nosy or bothersome neighbors in an apartment building or other attached property you might rent.
You can do more of what you want in a home you own as it’s customized to fit your likes and personality. You won’t be subject to annoying limitations over what you can and cannot do as if you were in a rented property.
There’s even the chance to bring in further income by renting out a room or the entire house altogether. You could bring in short-term tenants by listing a home on a home-sharing site, for example. You won’t have to ask a landlord for permission to make money this way when you own a property.
Steps to Stop Renting and Start Owning
You can stop renting and buy now when you use a few steps to get there. Here’s a brief look at some steps to follow for how to stop renting and buy a home.
1. Review Your Finances
The first step to help you stop renting and start owning is to look at your current financial situation. Check on how much money you have and compare it to your debt. Your debt-to-income ratio will be one of the biggest factors in getting approved for a mortgage loan.
Set yourself up for success to easily buy a home as you:
Look at how much money you have in savings. You’ll need a few months of living expenses saved up, plus enough to cover a down payment. Most down payments will be a percentage of the value of the property depending on the type of home loan.
Gather documents surrounding your income such as bank statements and tax returns. You must prove to a home lender that you have the funds necessary to pay for your home.
Check on your credit history and see that you’re in a good position where you are comfortable with what you have at your disposal. You may qualify for a better mortgage rate if you have a positive credit history where you show that you can pay off your debts on time and in full.
The value and cost of your home will vary with the market. Check on where you’re going when spending on your new property to ensure you’ve got something that fits well and is worthy of your plans.
2. Get Pre-Approved for a Mortgage Loan
You can get pre-approved for a mortgage by contacting a lender and offering details on your income, credit situation, and other factors. You may be pre-approved for a loan worth a specific total that they’ll determine on your behalf.
The value can guide you towards finding a home at a value that fits your down payment and monthly budget. It could also help you negotiate a lower cost on a home if you can show a seller what you plan on spending.
The pre-approval process involves contacting a lender with details of your current financial situation. You’ll need to provide enough documentation about your income and your prospects for earning. The report will help your lender find a suitable value for your potential home loan.
3. Consider Your Living Needs
All homes are different, as some may be more suitable for certain lifestyles than others. Part of how to stop renting and buy a home should involve reviewing what unique needs you have for your space.
Be sure when aiming to stop renting and start owning that you see what you will require from a property. You can look at your living needs based on:
How many rooms are necessary for your home, including the number of bedrooms and bathrooms you need.
The types of rooms you need in your space.
The garage size you will require.
The size of your land plot acreage.
How the property is close to certain amenities and commute destinations such as schools or places of work.
4. Be Sure You Have Steady Employment
You will be more likely to afford a home if you have consistent employment where you can be certain you’re bringing in enough money each month. It’s also easier to narrow your search for a home when you know where you work and how much you make.
You can look for a property in an area near wherever you are working, so you can keep from having to commute long distances every day.
Do not go into your purchase assuming your financial situation will improve as that could put you in a negative situation. Focus on what you’re doing now, and you’ll have an easier time affording your space without risking possible losses in the future.
5. Plan a Suitable Budget
The monthly cost for a mortgage payment may be less than the rental cost for an apartment or condo in some cases, but you’ll have to watch what you’re doing with your budget as other expenses come up.
Look at how well you can budget your mortgage payments versus all the other expenses in your life. Consider how much you’ll spend on other new expenses such as home utilities, mortgage insurance, and basic property maintenance.
6. Think About Where You Want to Live
It could take years for the value of your home to increase to where it could truly become profitable if you decide to sell it. Be sure when finding a home for sale that you look at where it is and if it’s a place that is more interesting or inviting to you.
You may have better luck if you plan on staying in the same area for at least the next five years. The property’s value will likely increase as time progresses, plus you may have some improvement plans yourself to help you boost its price even further.
7. Consider Your Future
What do you plan on doing in the future? Your home should reflect what you will be doing in the next few years. Some of the things you can consider for your future that could impact your living situation include:
Whether you plan on getting married
If you will be having any kids
Any new business activities you want to plan, including new lines of work
Your desire to add something to your property, including a detached building or another extension
Look at what you will do with your property in the future, and plan your purchase based on what fits the goal. You might have an easier time getting a quality property if you look carefully at what is open and if it is something useful for your future.
Stop Renting and Own Your House Today with Nexstar Homes
You’ll have more freedom over your home when you own your space instead of having to rent it from someone else. Look at your current situation and see if there’s an opportunity for you to stop renting and buy a home instead.
Homeownership is exciting and thrilling, especially when you have a property you love!
At Nexstar Homes, we build beautiful, custom-style homes that are perfect for a variety of lifestyles. If you are thinking about buying instead of renting, get in touch with our team today by calling 480-770-2222!