Renting vs Owning
Renting an apartment, a single-family home, or a room in someone else’s home is something that 99% of the population will experience at some time (that’s a completely made up statistic by me, by the way - but it seems like it could be right, doesn’t it?). And renting certainly has it’s place:
You’re young and don’t have a ton of credit established
Your credit score is less than stellar
You’re living somewhere temporarily and won’t be putting down roots
Other than these few reasons, I find that people continue to rent because they don’t know of a better or more affordable option. But let me share a secret with you:
Owning a home can often cost you LESS than what you’re paying in rent.
Is your mind blown? Mine was when I learned this fact!
Now don’t get me wrong - there are a lot of factors that go into whether that will be true for you. Your credit score and corresponding mortgage interest rate, your targeted home purchase price, and your down payment make up some of these factors. But assuming you have a credit score above 580 and you’re not trying to buy the Taj Mahal, paying less for a mortgage may be a real possibility for you. Your real estate agent will be able to recommend mortgage lenders that will fit your needs, can work with your unique financial situation, and that can be trusted to support you in one of the biggest financial investments of your life.
Something important to consider: there ARE some upfront costs that come with purchasing a home: an earnest money deposit, inspections, your down payment, and closing costs/prepaids. The good news? There are creative ways to reduce those costs if you don’t have a ton of cash sitting in the bank. Make sure to discuss those options with your real estate agent straight out of the gate. It’s critically important that you and your agent are on the same page when it comes to finances. There are few things more heartbreaking than getting a home under contract, just to realize later that the numbers don’t work. NO ONE wants you to be in that situation. So crunch some numbers with your agent, come up with a plan of attack, and go get yourself a house!
Everyone deserves the sense of security and feeling of accomplishment that comes with being a homeowner. If you’re wondering whether purchasing a home could be a realistic option for you, reach out to your local real estate agent and start the conversation. It could be one of the most rewarding decisions you make!
ABOUT THE AUTHOR:
Faith Irek, Sales Agent, REALTOR®, Breakwater Realty Group Co-Founder
Faith grew up on an equestrian farm outside of Portland, Maine and returned to the state after graduating from the University of New Hampshire with a Business degree. She brings over 17 years of high-level marketing and digital management experience to her real estate career and enjoys creating effective and creative promotional campaigns that support Maine homeowners in the sale of their property. Faith is equally as devoted to finding her buyer clients homes that they both adore and feel safe in, and is committed to a client-forward approach that leaves no stone unturned in pursuit of the best deal possible.
Faith resides in Falmouth with her family. She enjoys live music, kayaking, golf, and is learning to both refinish furniture and to not kill her houseplants (one of which is far easier than the other!). She will drop everything to pet a dog and will never pass up an opportunity to visit a county fair. She is the former Corporate Vice President of the Hugh O'Brian Youth Leadership Maine chapter and enjoys finding new opportunities to support her neighbors in need of a helping hand.
207.233.8177 // faith@breakwaterrealtygroup.com