What Can Change Your Mind About Buying a Home?

If you think you have decided to rent or buy a home then check out these facts - they may change your mind.
| Sunday, January 08, 2012

Many people may already have their minds made up in regards to whether or not to buy a home. However, facts and figures could change your mind and help you to make a more informed decision. In the end, the question remains the same: Should you buy or rent?

Information revealed by a recent study and infographic may make you change your mind about buying a home. The infographic revealed two very important recent trends. First, according to the study rental prices have climbed nearly 60% since 2008. Second, home prices have fallen around 46%. The graphic and corresponding study shows that since 2008 rental prices are climbing while home prices are ebbing.

What Buyers Don't Know

Although many buyers may have gathered that rental rates are rising and home prices are declining. However, fewer are aware that mortgage rates change on a daily basis. These rates change on a daily base due to everything from supply and demand to the real estate market outlook. Due to the lack of mortgage applications and numerous properties on the market, mortgage rates have been relatively low lately which provides incredible buying opportunities.

Furthermore, lenders fees also change and believe it or not are also negotiable. Many lenders have a high foreclosure inventory that has them needing to rid themselves of properties as soon as possible in an effort to reduce their losses. These situations, along with other influences, have made it so that lender fees are more negotiable than ever. Therefore, do not forget to negotiate when it comes to lender fees and do your homework to find out the fees of other lenders for comparison.

Along with the fact that mortgage rates change daily and lender fees are negotiable, many buyers are unaware that a pre-qualification is not set in stone. Just because you are pre-qualified does not mean that you are guaranteed. Most pre-qualifications are sent out before thoroughly reviewing your credit and receiving extensive documentation proving your income. Therefore, just because you are pre-qualified do not assume that you can purchase the home.

What Gets People to Rent

We know from the study conducted by ForeclosureDeals.com that rental prices are increasing and are in high demand. But why, exactly, are people opting to rent as opposed to buy?

First and foremost, many people rent due to the easy approval process. Unlike buying a home, many rental homes can be secured with a simple credit check and often do not even require a proof of income. As a result, many people decide to rent to avoid the hassle of trying to buy a home.

Second, many rental properties are currently offering a rent to own option that allows the renter to use its monthly payments toward ownership. Renting to own can save you money in the near future with the landlord paying for all essential repairs, while also providing an opportunity to purchase the home for less. As a result, the rent to own option is appealing.

Finally, people often rent due to the lack of commitment. If you rent a property you often only have to sign a 6 to 12 month lease and therefore can move whenever you desire. However, if you purchase a home you are committed until you can pay off the home or until you sell it; therefore, the lower commitment attracts many buyers.

Regardless of whether you have decided to rent or buy, take the infographic and these facts into consideration. Who knows? You may change your mind and opt to buy instead of rent – and if so, there are plenty of opportunities for the taking. 

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