Rent or Buy a Home in Barrie: How to Make the Right Decision

There are few decisions that a person faces that are bigger and more impactful than whether to rent or buy a home. There is a lot to think about, and the answer isn’t the same for everyone. When you are making a decision about housing, you can use all the help you can get. These tips will help you to make the right decision.

  • Pre-Approved Mortgage. A local realtor knows great mortgage agents and brokers. Before you buy or rent it is always a great start to see what can you afford. While there is a big difference in renting or getting a mortgage and buying always start first with what is affordable. Once you know what you can afford from a first and last to a down payment and monthly mortgage amount to put down.
  • Next, look at your other debts and financial obligations. If you are not able to keep up with your debts right now, this certainly is not the appropriate time to consider buying a home. If you are managing your debts, look at what portion of your income they compose. Your housing costs and other debts combined should make up about 35-40% of your total income. If your debts and mortgage payment exceed that recommendation, you should consider paying down your debts before committing to a mortgage payment.
  • Another important factor to look into is your credit score. If you don’t know your credit score, you can go online and get a free copy. This is important for a couple reasons. First, you should carefully look over the report and make sure that it is completely accurate. If not, take steps to have the report corrected. You should also know your score because it will affect the interest rate you will receive on a mortgage. If your credit score is less than ideal, consider putting your real estate investment on hold while you work on improving your score. Even if you are able to get a loan with an imperfect score, you will get a better rate and save money if you improve your credit score first. Pay off as much debt as possible, and pay all your bills on time.
  • Think about the other costs associated in owning a home. You might have to pay for mortgage insurance, and you will certainly have to pay for homeowners’ insurance and property taxes. You should plan to set aside funds each month for repairs and maintenance. There are other operational costs to consider, too: utilities such as heat, electricity, water, sewer, and trash pickup. These items can add up quickly.
  • You should also think about how long you plan to stay in this home before you commit to buying. If your future plans are uncertain or you know that you will only stay a short time, you may be better off to rent.

Call Your Choice Realty Corp. for help deciding if this is the time to rent or buy. Our realtors offer a variety of real estate options, including buying a home in barrie. We also offer an affordable low commission option so that you can find a plan that works for you.

We understand that not all buyers and sellers are the same, so we don’t take a cookie cutter approach with any of our clients. Call Your Choice Realty Corp. today and ask for Ken Sowman and to learn more about our low real estate commission.