There’s no denying that we are in a home buyer’s market. With reasonable home prices and low interest rates, it’s easy to see why many people are tempted to buy a new home. But home buying is a major commitment that requires well-thought out decision making. Your DC area real estate experts at The Estridge Group can help you determine whether to rent or buy your next home. Following these tips from the American Bankers Association can also help you decide how to make your next real estate move. 
Knowing Your Finances
It might seem obvious, but knowing if you can afford the monthly payment is integral when making your Washington DC home purchase decision. A larger down payment often means smaller monthly payments. Additionally, home payments (whether mortgage or rental) should be less than half of your monthly income – if you have debts that prevent you from making house payments that are around 35-40% of your income, you may want to reconsider buying.
Financial Drawbacks and Benefits of Home Ownership
Be prepared for unexpected expenses. Home owners know that sudden maintenance repairs can add up quickly. Renters won’t need money set aside for the additional costs associated with home insurance and real estate taxes. However, home owners are able to enjoy tax breaks that renters cannot.
What are Your Long Term Home Buying Plans?
If you’re not planning to stay in your next DC area home for a long time, you won’t gain much investment value. In this case, you might consider renting, which allows you to move more freely. Home owners, on the other hand, are able to build equity the longer they stay.
How’s Your Score?
If your credit score is low, it is more likely you will have a higher interest rate. If you pay your bills on time and avoid maxing your credit lines, you are more likely to have a higher credit score and can qualify for better interest rates. Don’t rush into buying a home if your credit score could stand to be higher. You could save more money in the long run by building a higher score.
Questions About the Renting and Home Buying Process
If you would like more information on home buying or renting, please get in touch with us. We’d be happy to help you find the home that best fits your needs.
