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5 Reasons Buying a Home is Better Than Renting!

Purchasing a home offers amazing financial benefits. Renting a home offers amazing financial benefits for the owner of the property you are renting from. Keep that in mind the next time you think about staying in your rental.

1. You Are Paying For A Home Regardless if You Rent or Buy

Some will argue renting eliminates the costs of property taxes and home repairs. All renters should realize that all the expenses your landlord must incur (property taxes, repairs, insurance and etc.) are rolled into your rent anyway along with profit margin.

2.  Home Ownership Is a Form of Forced Savings

Studies have shown homeowners have a net worth 44X times higher than a renter. It was recently estimated that a family buying a average home this past January could build more than $40,000 in family wealth in the next five years.

3. Owning Is a Hedge Against Inflation

Home values and rents tend to go up at or higher than the rate of inflation. When you own, your home's value will protect you against in…

How Much Home Can I Afford?



How Much Home Can I Afford?

Figuring out how much you can afford or what your payment will be each month is one of the most asked questions I face as a Real Estate Agent. Picking up the phone and calling a lender you don't know can be scary. Looking at mortgage loan programs available can be confusing and understanding interest rates can be trying. 

There is an easy way to get started. 

Step One: Find out what the interest rates are at the current time. You can typically do this by searching on the internet or a quick call to a local lender. Get your rates on conventional fixed rate loans.

Step Two: To obtain the clearest picture of how much home you can actually qualify for, the best idea is to contact a reputable local lender and let them analyze your entire situation. 

This lender can calculate your income-to-debt ratio, do a quick credit score and give you the information you need. Typically, lenders like to see a ratio not exceeding about 28%. 

This does not take into consideration long term monthly debt. As an example, to qualify for a loan, lenders may require ratios of 28% or 36%. This means you can spend up to 28% of your gross monthly income on a mortgage payment, and no more than 36% of your gross monthly income on all forms of debt, mortgage included.

I work with a number of loan officers and can recommend one for you. Contact me from the sidebar! 

Thanks!

Leigh Ann 

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