Rent vs Buying: Pro's And Con's

Renting versus buying a home is a dilemma that many people face, and it can be a difficult decision to make. To help shed some light on the topic, we sat down with TJ Ebert, a local lender at Guidance Mortgage, to discuss the best tips for making the transition from renter to homeowner.

According to Ebert, one of the biggest mistakes renters make when deciding to buy a home is waiting too long to start the process. "A lot of individuals do wait until a few months before the lease is up and then they come to find out that it takes longer to get an offer accepted," he explained.

Waiting until the last minute can lead to a rush decision that may not be in your best interest. You may end up having to renew your lease or move into a temporary housing solution, which can be costly and inconvenient. To avoid this scenario, Ebert advises starting the home buying process early.

Ebert's advice is echoed by Jennifer Zoeller, local estate agent. "The earlier you start, the better off you're going to be," she said. "Even if you're not ready to buy for another year, it's never too early to start preparing and understanding the market."

Another reason to start early is that finding the right home can take time. Zoeller noted that inventory is currently low, which means that it may take longer to find a home that meets your needs and budget. "Right now, we're experiencing a very low inventory, so it's really tough to find something to buy," she said.

Ebert agreed, stating that the lack of inventory is due in part to the pandemic. "We've seen a lot of people move out of cities and into suburbs and rural areas, so the demand for housing has increased," he explained. "At the same time, construction has slowed down, so there's not as much new inventory coming onto the market."

In addition to a low inventory, buyers also face competition from other buyers. Ebert noted that multiple offers on a home are becoming common again, which means that buyers need to be prepared to act quickly if they find a home they like.

To increase your chances of getting an offer accepted, Zoeller recommends working with a reputable lender who has a good relationship with the seller's agent. "Having that rapport between the lender and the agent is huge," she said. "It can make a big difference in getting your offer accepted."

Ebert also advises getting pre-approved for a mortgage before starting your search. "Having a pre-approval letter shows the seller that you're serious and that you can afford the home," he said. "It can also give you an edge over other buyers who may not be pre-approved."

Ultimately, the decision to rent or buy a home comes down to personal preferences and financial considerations. However, by starting the home-buying process early, being prepared, and working with the right professionals, you can increase your chances of finding and securing your dream home.

In summary, the best tips for renters considering buying a home are to start the process early, work with a reputable agent and lender, get pre-approved for a mortgage, and be prepared for a competitive market. As Ebert noted, "it's never too early to start preparing and understanding the market." So if you're thinking about making the leap from renter to homeowner, now is the time to start.