Three Things Renters Need to Consider Before Buying a Home

things renters need to consider before buying a house

Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? Of course, there are several advantages to home ownership. But it’s important to understand what buying a home really means. If home ownership is becoming increasingly appealing to you, here are three things renters need to consider before buying a home.


If you have a job or steady source of income, you’re off to a great start. If you’re already able to pay your rent
on time each month, home ownership could be easier than you think. Unless you’re in a rent controlled location (you unicorn, you), the likelihood of your monthly payments increasing is high. Those rising and fluctuating costs can have a big impact on your financial goals, including any plans you’re making to save for a home purchase.


You rarely need a 20% down payment. In reality, there are many programs that will work with 5%, 3.5% , and in some cases, even 0% down. As well, closing costs can sometimes be paid by lenders, sellers or come from
gifts or grants. So if you think you’re out of luck just because you don’t have tons of cash, no worries.
Chances are still good there’s a solution that may work.


If you pay your bills on time and have avoided major issues like bankruptcy, foreclosure, short sales and judgments, it’s likely your credit is in good shape. Requirements will always vary, but there can still be reasonably flexible loan options, such as the FHA loan guarantee programs.

There are so many things renters need to consider before buying a home. But, if you’re ready to become a homeowner, waiting any longer may not make financial sense. Instead, perhaps 2022 is the year you escape the cycle of rising rents and enjoy the many benefits that come with homeownership. If you’re thinking that you want to make the change or want to just check out your options reach out to the Ultimate Lending Team to find out if buying a new home makes sense.

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