BUYING VS. RENTING
Buying a home is considered by most to be the wisest investment one can make. Home ownership has become the number one priority for individuals and families; and is the cornerstone of the concept of “The American Dream”. It is one of the first steps on the path to financial security; and it is a major contributing factor in making upward financial mobility possible.
In contrast to renters, most homeowners receive significant tax breaks, because interest paid on a home mortgage is usually tax deductible. Rents increase over time, whereas mortgages with fixed payments become cheaper over time when adjusted for inflation.
When is it a good time to buy? The best time is in a down market while prices and interest rates are low. However, this may not always be optimal for every buyer’s situation. A number of varying factors can influence the right time for a home purchase. If prices and rates are not optimal, but you are in an ideal position to purchase, is it wise to wait years for the right price and rates? Can you predict your ability to finance a home at a future time? For some, the right time to purchase can be a moving target; and it isn’t wise to miss the ideal window of opportunity. This may be the time and opportunity you have been waiting for.
Buying real estate is a major investment, and can make even the most seasoned investor feel overwhelmed. With the experienced agents at Century 21 Action!, your home purchase can be easier than you’ve imagined. We can guide you through the steps and help you purchase property that will meet your needs and financial goals. We will bring you a level of service and attention that will bring you peace of mind throughout the process and beyond.
- First Time Buyers (click for pdf guide)
- Repeat Buyers (click for pdf guide)
- Investors (click for pdf guide)
Given that your home purchase will involve upwards of 20 people and potentially 12 different companies; everyone involved must act in a manner that will facilitate the swift closure of the transaction. The buyer must appear financially stable and because of this, should be engaging in some good financial habits that build a strong case for positive financial stewardship. Here are some tips you can follow leading up to the close of escrow that will help you avoid some major pitfalls:
- Do not terminate from your current employer or cause a reduction in work hours
- Do not make any major purchases (car, furniture, refrigerator, washer/dryer, etc.)
- Do not apply for credit cards or raise limits for credit cards currently held
- Do not authorize anyone to verify your credit rating except your lender
- Do not give 30 day notice at your current residence until escrow closes
- Do not incur any debt of any kind
- Do not co-sign on a loan
- Do not lend money
- Do comply with requests from your agent, lender, and escrow officer expediently
- Do speak with your lender before accessing funds in your bank accounts
- Do be aware that escrow rarely closes on the day it is scheduled to do so
- Do pay all of your bills by the due date indicated
- Do submit financial items as requested
- Do return calls promptly
Given the variables related to the transaction, the closing date is only an estimate. No one can guarantee when the escrow process will be finalized. For that reason, it is usually best to wait until your loan is approved before giving notice to your landlord (if you are renting) even though your mortgage and rental payments may overlap.
Facilitating the quick close of escrow is a high priority for the entire staff at Century 21 Action! We understand that the process can be intimidating and challenging – that the “Dos” and the “Do Nots” may be difficult to adhere to. Speak with an agent to understand the importance of positive financial stewardship prior to purchase of a home.
Purchasing a home is a complicated process; and it is suggested that you work with an experienced professional to see the process through. The professional agents at Century 21 Action! are well trained to guide home buyers through the process quickly and effectively. Please call your agent or our office if you have any questions or concerns.