How to Make the Transition from Renting to Buying09/28/2018Buying a home is one of the biggest financial decisions you will make in your life. So, it’s no wonder people take it so seriously. Sometimes people continue to rent because they can’t seem to muster up the courage to stay rooted in one area or dedicate so much of their savings to one investment. On the flip side – when you rent your money is “going out the window” as some people might say. Whatever your reasons may be – if you’re considering it, here are a few tools that might be able to ease your mind and help you make an informed decision. Rent vs. Buy Calculator At the end of the day crunching the numbers could make your decision easy. If you’re a left-brain kind of decision-maker, a calculator like SIRVA Mortgage’s could be just the thing you need in order to pull the trigger or hold off. In order to calculate the costs you’ll need ballpark figures for: · Home purchase price · Interest rate · Mortgage terms · Property tax rate · Home insurance · Association/maintenance fees · Down payment · Closing cost estimate · Rent amount, taxes and inflation After you use this calculator, you might want to talk to a mortgage counselor in order to sort through some of these ballpark figures. Our counselors are always available and ready to help – you can call us at 800-531-3837 for a free no-obligation consultation. You can even use the Home Benefits program to earn cash back on finding a real estate agent or save on moving services. Make a Budget. When you become a homeowner, your budget will change. Not only will you most likely have a mortgage payment, but you’ll also need to budget for taxes, insurance, neighborhood fees, utilities, etc. Some things you might not think about budgeting for: · Seasonal yard projects · Air filters (change monthly) · Light bulbs · Gas for lawn mower · Miscellaneous repairs · Savings for larger repairs · Cleaning products · Seasonal insect spray Freddie Mac has a monthly homeowner’s budget that you can download and use to start mapping out all of your possible monthly expenses to better estimate how much you can afford in a monthly mortgage payment. Talk to Friends. The best way to prepare for homeownership is to talk to friends. Before purchasing a home, ask them a few questions: · What hidden costs were you not aware of when you bought your home? · What kinds of things should I be looking for in a home base on your experience? · How do you budget for your monthly expenses? · What do you enjoy about owning vs. renting? Talk to a Mortgage Counselor. If you’re still on the fence about buying a home – you might want to talk to one of our mortgage counselors and discuss your options. Knowing your market and the current rates will help you make a more educated decision. You can call us any time at 800-531-3837 and talk to one of our mortgage counselors– we would be happy to help you with this important decision.