There is a misconception about mortgage lenders and how they target renters to apply for a loan. Most lenders understand that there are certain circumstances and reasons why people should choose renting versus buying a home.
If they are a good lender like Direct Lenders, LLC then they will target renters for the right reasons. For instance, they believe that the amount of rent individuals are paying could go into a home that can reap many rewards. Rewards such as actually building equity in your home.
Rent is at an all-time high and it doesn't look like it is going to decrease any time soon. Many people have great reasons for renting. There are definitely pros and cons to both renting and home buying.
Pros & Cons to Renting
Pros
Renting is a fantastic option for people who move around a lot or plan to move soon. Remember, renting refers to both apartments and homes. When somebody rents they have the flexibility to not feel locked into a single place for a long period of time. Also, depending on location then paying rent can save money in comparison to a mortgage. It is also a good thing to rent when you are single or young, not looking to settle down right away. Plus, it is nice to get an apartment ten-minutes from a job. Instead of commuting over an hour one way just because of the location of an affordable home.
Cons
The main negative factor of renting is that money is basically being burnt. Rent is also becoming outrageously expensive and the same money spent renting can be put towards a home. A home provides greater square feet and the money is acting as an investment. Over time people will gain equity every time they make a payment on a home. When your lease is up then the price of the rent can change, which can price people out. Of course, moving over and over when the lease is up can be a miserable experience. Always having to hire movers can be pricey and doing it by oneself is not a fun task. Last thing to think about is that at any point the landlord can kick out a renter for violating guidelines and even sell the property.
Pros & Cons to Homebuying
Pros
Homebuying is one of the most important decisions a person will make in their life. When somebody buys a home they are provided a better bang for their buck. More space and more freedom to make a house their home. A family belongs in a home versus a cramped apartment. Every payment means you are buying the value of your home, which can be used to help with necessary repairs in the future. The equity earned will give somebody more financial options when needed situations arise. If you lock-in a fixed rate that is low in comparison to the years to come then you don't have to stress over getting a home when rates are near double-digits (if that happens). A home is a place where people are in control to be themselves and grow throughout this life.
Cons
Probably the biggest negative with buying a home is that people can't predict what the market is going to do. One day your home could increase in value by $20,000. Then the next it could decrease by the equivalent. Is that likely? Most likely not, but we can't predict that. The value for a home may diminish, which makes selling a hard decision. Another con is that there are a lot of expenses that go with keeping a home in tip-top shape and up-to-date. A few are new roofs, pool expenses, yard-maintenance, and more. All of the lenders at Direct Lenders, LLC will give our honest opinion on whether or not an individual or individuals are better off buying or renting.
Where Is It Better To Buy or Rent?
Most people wonder how to find out where they can afford buying a home over renting. The best and easiest way to find out is to contact us at Direct Lenders, LLC and we can help you get the answer you need. Typically, in more populated areas it can be nearly identical in price-point for renting versus owning.
Unsure about the pricing where you are shopping then give us a call at (877) 455-0440 to get the information you need. Also, continue to explore our website for some really great information about why we are the only lender for you. We do things better! It's as simple as that.