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Buying A Home Vs Renting

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One of the most basic ways to increase your personal wealth has always been owning your own home. The equity that you accrue can be utilized to make investments, purchase additional properties, and secure your financial future. If you do it right. It takes some careful planning and a bit of research, but proper planning can make you a tidy profit in the long run.

When renting a home it is hard to accumulate wealth as you are consistently paying rent to someone else. Essentially you are increasing the landlord's equity and worth. Why not change places and put yourself in the position to gain some equity and make some money while you are at it? Essentially it comes down to the down payment. Do you have the ability to make one? In today's market there are any number of mortgage companies that are custom tailoring mortgage packages to first time buyers. Many of them require little or no down payment. Putting yourself on the property ladder makes good sense. It is an investment in your future.

Don't be afraid to investigate your mortgage options. Make sure that when searching you have each offer scrutinized for clauses and other aspects that may not be favorable to the borrower. There are many fine mortgage lenders out there, but like any business; there are those who would take advantage of prospective buyers. Be wary of deals that seem too sweet. If you have doubts about a certain offer, ask someone in the know about the terms you have been offered. This could be your realtor, a real estate lawyer or other professional with reason to know about these things. If you have spent years renting and are tired of dealing with landlords, maybe it's time to become one!

Buying A Home Vs Renting

What most prospective buyers don’t know are the risks associated with the purchase of a foreclosed home. Here are just a few:

•Your financing options may be limited. If you are looking to finance your new home via an FHA loan, be advised that certain foreclosed homes do not meet the minimum standards for FHA financing. Homes missing ranges, flooring, and homes in need of major rehab will not qualify.

•Get ready to bring cash to closing. Not only are seller contributions limited (if there are any at all), but the property you’re looking at may be behind on taxes, HOA fees, etc.

•Don’t expect a warranty. That steal of a foreclosure comes AS-IS. Whatever problems the home has now, or in the future, are the new owner’s responsibility.

•Be prepared to get dirty. Once you’ve purchased that foreclosure from the bank, you get the chore of returning it to habitability. If you’ve never walked through a foreclosure property, you might be shocked at what this entails. We’ve seen bank-owned homes with missing appliances, flooring, A/C units, broken windows, missing doors, holes in the walls, stolen copper pipes, ripped up landscaping, pest infestation, and more. And this doesn’t include the smell.

•What you want doesn’t matter. The bank doesn’t care about your schedule. The bank doesn’t care about your title company preference. Be prepared to close when and where the bank tells you to. And be prepared for changes—the bank has no problems with moving up (or delaying) your dates.

•Surprise! Surprises at the closing table are never a pleasant experience, but it’s not unheard of for previously unknown issues with the property to pop up at closing.

So, what exactly makes your investment in a new home better?

•THIS HOUSE IS ALL YOURS! Why be stuck with what someone else liked? With a new Montalbano home, you pick the flooring, countertops, light fixtures, you name it. At Studio Montalbano, our design experts will help you create the home you’ve always wanted.

•THE WARRANTY. Every new Montalbano Home comes with a two-year builder and 10-year structural warranty. We stand behind the homes we build so you can purchase and move in with confidence.

•SELLER CONTRIBUTIONS. Builder incentives are available to help with closing costs or interest rate buy-downs. Why bring more money to closing than you have to?

•YOUR HOME IS READY. At Montalbano, you have TWO opportunities to walk your home in the days before closing to make sure that everything is as it should be.

At the end of the day, the choice is yours. But being armed with the right knowledge will help you make the decision that’s best for you and your family.

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About Author

Both Adeal Benhayoun & Annie Empl are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Adeal Benhayoun has sinced written about articles on various topics from Sell Home, Foreclosure Help and Home Improvement. Adeal Benhayoun is a professional realtor specializing in . For all of your. Adeal Benhayoun's top article generates over 9900 views. to your Favourites.

Annie Empl has sinced written about articles on various topics from Foreclosure Help, Home Buyers Guide and Foreclosure Help. About The Author:Katherine Kerr GleasonReal Estate Marketing ExpertMontalbano Homes, a popular .. Annie Empl's top article generates over 6600 views. to your Favourites.

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