Should I Rent or Should I Buy?

How do I know if I should keep renting or try to buy a home?

Unless you're planning on marrying a prince...or tying the knot with the next heir to the Wal-Mart fortune, how else are you planning on building, or rebuilding, your financial future? After all, Our president, Donald Trump, didn't make his billions by renting. By the end of this post you'll quickly notice that this is really less a question of 'Should I buy?' but more a question of 'Can I buy?' 

There are a number of concerns that stop the home buying process before it even gets started.  The most common obstacle is fear.  It's the all too common fear that, "I can't" or "I probably won't be able to." More often than not, the fears and obstacles that hold buyers back are absolutely manageable. Here's a list of the most common concerns and objections I hear when I meet prospective buyers:

1. I had a short-sale a little while back, so I probably won't qualify
2. I had a foreclosure, so I probably won't qualify
3. I filed bankruptcy, so I probably won't qualify
4. My credit is probably too low, so I probably won't qualify
5. I have a huge monthly boat payment, so I probably won't qualify
6. I have student loans that I need to pay off, so I probably won't qualify
7. I'm too young, so I probably won't qualify
8. The payments will be too high, so I probably won't qualify

...and the list goes on and on.  Let's get rid of the "probably" and actually learn the truth. I'll help.

Let's start here:

Here are two fun applications that illustrate under what circumstances it's best to rent and when it's best to buy.  See what's best for you.  It's a pretty compelling experiment.

SmartAssets Buying vs. Renting Calculator
New York Times Buying vs. Renting Calculator

How do I know if I even qualify to buy a house?

Don't get overwhelmed. Ask for help.

Simple! You go into a lender's office and ask. Really! Just do it! I don't 'wonder' if I need to have a cavity fixed. I ask my dentist! Don't waste time wondering if you might qualify.  Ask a lender. "But I don't want to go through all of that paperwork drama." OK. I'll make it even easier.  Find a lender. If you don't know one, ask your friends and family who they use. Don't want to ask them?  Ask me! Simply call or E-mail your lender and say this: "I'd like to buy a home but I'm not sure what I qualify for. Will you help me with that?" That's all it takes. Just start the process. Once the ball is rolling it's really a straightforward process. I'm happy to help if needed; sorting, scanning, copying, organizing, e-mailing, delivering, documents, etc.  It's all part of the process.  Your lender and I can help make this process as smooth as possible.

Your lender will probably ask for what I call "Your 2, 2, & 2."

• 2 years of taxes (or at least your W-2s or 1099s to start with) 
• 2 months of bank statements
• 2 months of pay stubs 

Your lender will take it from there.  Did you know that you can be approved for a mortgage with a credit score as low as only 600.  Sure...a credit score of 750 or 800 might qualify you for a lower interest rate, but the average credit score in California is only 651. You probably qualify right now and don't even know it. There are grants and programs that provide downpayment assistance and help with closing costs. There are even areas such as Calimesa, Cherry Valley, Oak Glen, and parts of Beaumont and Yucaipa that qualify for a USDA program with up to 100% financing. Your lender knows what's possible...and what's best.

Need more reassurance?

In my opinion, even in the worst markets, owning is better than renting. Here are just a few more compelling reasons:

• You become your own landlord.
• You build equity; net worth. 
• The Federal Reserve reported that, on average, homeowners have thirty times higher net worth than renters. That's not 30%, that's 30 times...it's 3,000% higher net worth on average. 
• You benefit from tax write-offs which often makes owning a home less expensive than renting. Writeoffs may include:
• Interest Payments
• Property Taxes
• Parts of Your Closing Costs
• PMI/MIP (Mortgage Insurance Premiums)
• Interest on equity lines of credit, and more.
• Even Forbes agrees with me, that buying is better than renting...and they're no slouch!  

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
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E-mail me on Andy.Blasquez@gmail.com