Buying Real Estate may not always make sense, but in 2015 the reasons for buying a home rather than renting, are multiplying fast, even faster than rental rates.

Lots of people rent a place to live because they think they can’t buy. Maybe a financial event (for example bankruptcy, foreclosure, short sale) has dinged their credit or they haven’t been able to save enough money for a down payment. Maybe their income isn’t what it used to be. Believe it or not, none of these issues should deter you from exploring your home buying options.

This is Colt. Colt came to me through a rental call. I listened briefly to his justification for choosing to rent rather than buy. The reasons he cited were all the same reasons that most people assume they won’t be able to purchase a home. As a matter of fact I had three such conversations last month alone, all resulting in a pleasant surprise for the current renter. Colt closed on his home, the other 2 are in the process of buying a home right now. By the way, Colt’s mortgage payment including principal and interest, is over $300 LESS than he would have been spending to rent. So instead of paying for his landlord’s next vacation, Colt can be saving for a vacation of his own.

Every chance I get I talk to mortgage lenders. Some work with down payment assistance programs to help out home buyers who don’t have money for a down payment. Others have plans in place that can greatly reduce or even eliminate closing costs. Almost all are willing to go the extra mile to seek out mortgage options that will allow for credit issues or reduced income. There are some remarkably empathetic mortgage lenders out there and most have heard it all, from all-out bankruptcies to painstaking short sales. You just have to know that you’re not alone. Mortgage lenders have programs to suit almost every home buyer.

Rental rates are rising daily. Mortgage rates are still incredibly good. Home prices have been recovering but definitely not out of sight and nowhere near what they once were. In most cases your monthly mortgage payment will be lower than a rental payment for the same property. A real-life example is below.

The graphic above illustrates a real life example of the cost of a mortgage and the cost to rent, the same model home in the same neighborhood. Note that even including taxes, the monthly mortgage payment is over than $200 LESS than the monthly rental.

Call me, I listen. I listen to mortgage lenders, I listen to industry news, and most importantly I’ll listen to you. The obstacles you assume you have, may not be as bad as you think.   602-999-0952