The Truth of Credit

I wanted to discuss the question of whether it is better to Rent or Buy a home? This is a common question for those first-time home owners or someone looking to re-establish themselves.

 In most cases, it’s better to buy a home than to rent. But not in every case. Comparing buying with renting is actually a fairly complicated endeavor. So to make it simple I’ll give you my Top 5 reasons why you should rent. You should usually buy instead of renting except when:

1. You intend to move within a few years.
2. Your rent is very low (2/3 or less of what your total monthly payments would be for buying a house, including taxes & insurance).
3. You don’t expect to live more than another 15 years.
4. You can’t afford the closing cost or down-payment for the home.
5. You think you would rather invest in other money vehicles i.e. (stock market, mutual funds, coins etc…..)

The TRUTH is it not nearly as easy to get a home as it used to be. That alone may take you out of the running if your credit is less than desired. The banks are gun shy to give out loans to people that may have difficulty making payments. Don’t take my word for it, you can read more here, It’s harder than ever to get loans.

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