For some people, renting is not an easy choice. The house craze can escalate when you see your friends buying their first home, and renting can feel like you’re “throwing money out the window”.
Advantages Of Renting:
There are many advantages of renting. So, be sure to keep these amazing benefits of renting in mind while you ask yourself, how much rent can I afford?
There Are Fewer Commitments. Not sure if you like the area where you are renting? Hey, you’re leaving as soon as your lease expires. Also, if you have a job that requires you to move a lot (like serving in the military or government), it may be easier to terminate your lease than to sell your home.
This Can Help You Get a Mortgage Later. Did you know you don’t need a credit score to get a mortgage? No, like, seriously. Many lenders offer a manual underwriting option, which is the talk of the banker to decide if you qualify for a loan by looking at things other than your credit score. , if you don’t have. One of those things, and often the most important, is the process of paying your rent on time. So instead of worshiping the almighty FICO to boost your “I love the debt” credit score, rent for a season. If you already have a credit score, get out of debt and get out of it!
Some are the other advantages of renting are:
You don’t have to worry about maintenance.
You don’t have to pay an unexpected repair cost. It’s someone else’s expense.
Don’t forget renters insurance
As a tenant, you don’t have to worry about paying for things wrong with your lease. But there is an additional cost that you should choose to rent:
Having a rental insurance policy will protect you financially if your belongings are lost or damaged in a disaster such as a fire, storm, or theft. Don’t rely on homeowners’ insurance, which usually only protects their property.
Renters’ insurance is pretty cheap, so there’s really no reason not to have it. If you need insurance, contact a trusted agent for advice.
Save On A House While Renting
If you want to say goodbye to renting and buying a home, you need a decent down payment. But how much should you put?
Ideally, you should deposit 20% of the total value of the house. It may seem like a lot, but putting that amount down means you won’t have to pay for private mortgage insurance (PMI). These monthly fees can add up quickly, and you’re only paying to protect your lender in the event you stop making payments – that’s not the insurance for you!
If you’re a first-time homebuyer and ready to buy (remember: this means you’re debt-free and have a full emergency fund for 3-6 months of expenses), a 5-10% down payment is also acceptable, but be prepared to pay PMI. And stay away from FHA and VA loans and all their fees!
How the hell can I save all this money? The problem is like this: It might be easier than you think with our favorite B-words: a budget.
If you’ve never sat down and budgeted at the beginning of the month by planning what to do with every dollar you take home, we have some bad news:
You may have lost a lot of money without even knowing it. This is what happens when you don’t tell where your money is going – you’ll end up wondering where it went. Here’s the good news, though:
When you make your first budgeting effort, you’ll feel like you’re getting a raise for all the money you make. We hear first-time budgeters say things like, “Did I really give Chick-fil-A and lululemon that much money?
Right you have. But you don’t have to! And it’s not like you have to cut the fun out of your life when you’re on a tight leash. You could simply cut back on buying one pair of leggings a month instead of six.
All that extra money, plus whatever you squeeze out of your budget, can go towards building a solid payout. Proceed to the next steps
When you’re ready to start saving for your home, check out our Home Buying Guide. This guide will guide you through the home-buying process from start to finish and give you peace of mind throughout your journey to becoming a homeowner.
And when you’re ready to take the big step, you need PODS by your side. When you do, they will drop one of their storage and move buckets – you choose the size – at your current address. Once you’ve filled it out, they’ll take care of shipping it to your new location. Best of all, you don’t have to deal with the chaos of hiring a carrier.!