Home Loan Financing - Rent vs. Buy

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Rent vs. Buy

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Should I keep renting or buy a home

The decision to buy a home vs. continuing to rent is one that requires some thought and planning as it is a decision that generally involves a long term commitment and directly affects the quality of your life. Although, as with all financial decisions we need to look at the numbers first, but there still are other factors which need to be considered before making the decision to buy.

First you need to look at the numbers, can you afford to do this? Use our rent vs. buy calculator to see the picture, "by the numbers"

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Now that you've taken a look at the numbers you need to consider the "other numbers" that a simple calculator cannot tell you

How long are you planning on living in the location you're looking to buy, is your job secure?
Are there any potential increases in the size of your family in the future
How does the local real-estate market look? Are property values high while rentals are low? How about future trends? Would it make sense to wait?
Are you prepared to take on the additional expenses of owning a home.
Do you have a high debit load right now? Could you pay some bills off first & save for a down payment? Can you get additional financing to pay those bills off?
Do you fully understand the benefits of paying a mortgage vs. renting when it comes to your taxes.
Are you eligible for any assistance programs which may help you purchase a home

Once you've looked at all of the numbers you might want to think of the positive benefits of owning a home. Recent studies indicate there are many positive effects of home ownership such as:

The pride that comes with owning your own home and being able to shape your home as you please.
Stability in your personal life and in the community increases as you gain a sense of belonging.
Children perform better in school.
Owning a home allows you to build equity which directly affects your financial health.

Almost every resource out there tells you the same thing... Contact a mortgage professional before you go shopping for a home, even before you talk to a realtor. The reasons for this are pretty self explanatory:

You can get a pre-qualification letter to show to your realtor or seller, this shows a realtor or seller you're to be taken more seriously as you're currently working with a mortgage financing company to secure financing.
It helps to know exactly what you can qualify for before you go shopping for a home
A mortgage professional can give you advice as to what purchase assistance programs you may qualify for and what your monthly payments would be like.

Consult A Mortgage Professional

Although every effort has been made to keep this information accurate, the information provided by the First Arkansas Financial website is provided for information purposes only. First Arkansas Financial makes no warranties or representations about the completeness or accuracy of the information provided in the content found in the First Arkansas Financial website. The information contained within may or may not apply to your specific situation, and it should not be construed as financial advice. Because financial requirements are continually changing, please consult a mortgage professional with any questions you may have. First Arkansas Financial Inc. is a mortgage broker that provides home loan financing services in the following states: Arkansas, Missouri and Texas.

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