If you can rent a home then you can buy a home!

A lot of clients that are looking to rent a property are surprised when I say they can possibly buy a home.

Looking for a place to rent can get pretty expensive, there's not much out there at the moment for a low price so a lot of people are looking for rent for around $1,400 and up or even to rent a home for $2,000 and up. Every time I hear that from a client then I let them know that buying a home would honestly be a little easier.

I usually get responses about how their credit isn't good but most renter's are looking for high credit scores, higher than what you need to be approved for buy a bank or mortgage officer to purchase a home. The Landlord wants to make sure that they will get their money every month so they want high credit scores which doesn't necessarily mean that people with lower credit scores won't pay but it makes them feel better.

Another response I get is that they don't have enough money to pay to get a home but that's usually not true as well. When someone looks for a rental that is listed with an agent then they have to pay for the rent, agent fee and usually a month and a half of the rent for the security deposit. So let's say that someone was looking to rent a property for 1,700. Then they would have to pay the first month rent of 1,700, then the agent fee of 1,700 (agent fee or commission is based on the monthly rent of the property) and another 2,550 for the security deposit so all together that would be 5,950 all together so to buy a home for 200,000 then they would need just an extra 1,050 or to buy a 300,000 home then they would just need an extra 4,550 as the deposit of the home. The lowest deposit that you can make on a home is 3.5% of whatever the price is.

Lastly, I hear that it leaves no money for the closing costs but the closing costs can be financed. You can ask for Seller's concession which is a way to get money back for closing costs but that will be explained on the next post. But i say that it is always better to buy than to rent because you're just paying someone else money that you could be using to have your own home.