Should You Rent Or Buy a Home?

When it comes to where you live, there are two options: renting or buying. The right answer may come down to a few individual factors. It’s always best to wait on buying a home if you’re just not sure right now, as it is a sizable investment. However, should you decide buying is the best course of action, Heritage Bank is here to assist with your financial needs.

Initial Questions to Consider

Before you go about looking at the pros and cons of buying versus renting, you need to answer a few basic questions. First, how long do you plan on living in the area? If you have your sights on moving out in a few years, it’s better to rent rather than buy. From there, how much do you have saved up, and what are your financial goals? It may be better to wait for now, save up money for a larger down payment (which can help reduce your interest rate) and shore up any issues negatively impacting your credit score. Taking care of these will push back your ability to buy a home, but will help you save in the long run.

Renting Vs. Buying Costs

If all you need is a single, one-bedroom apartment, the cost of renting is almost always cheaper. However, maybe you need a home office, or secondary bedrooms for children. In these instances it can double or triple your rent. This quickly puts you on par with what you might pay for a mortgage. Plus, with a montage, you’re building equity.

Responsibility for Repairs

You will be in charge of making your own repairs when you own a home. When renting, this is typically up to your landlord. However, some landlords may drag their feet, which can reduce your overall quality of living.

If after going through this list, you believe that buying a home is the right choice for you, your next step is to contact Heritage Bank and fill out a mortgage application. This will determine how much you are approved for. Pre-approval is important as you’ll know how much home you can afford, before looking at what’s currently available.