Are you Ready Yet?
While working with clients I have found sometimes we just are not too sure if we are ready. So, here are some questions to ask yourself (and your spouse if you have one) to see if you are ready:
Very rarely it's hard to find someone who is listing their home on the MLS or through a Property Management Company to lease you a home if you have an eviction on record. So, advise I have been given by more than one Realtor who handles listing properties for leases is to get that cleared up. Revisit the situation and pay it off. Evictions are court situations that do not leave your history. So, clearing it up is what I've been told is the best thing to do.
If you DO NOT have an eviction but you have credit below 400 that may make finding a lease house or apartment hard to do. However, I can usually negotiate a higher deposit or a little higher rent to substantiate the credit score. My opinion is "Money Talks".
If you have more than one pet it may make finding a place to lease even harder. When trying to help a client with 4 pets I had mixed results. More than 4 houses listed on MLS that said "pets allowed" but had only "1" or "2" allowed immediately said "4 pets is a DEAL BREAKER" and said "NO". However, with increased pet fee / pet deposits I got 3 Owners to allow for the 4 pets. That was amazing. Again, "Money Talks"!!
If you are in the market for a lease house due to work but you only need it for 9 months instead of the formerly common 12 months it is possible. Again, "Money Talks". I helped a man who had crews coming in and out of Texas at different times to work on different projects in construction and bam, I was able to negotiate 9 month contracts at a small increase in rent to allow for the 9 month rental deal instead of 12 month deal for over 3 properties! This client was impressed and still uses my services for many nation wide areas.
Leasing Pros: Lease amount is sometimes less than paying a mortgage, you don't own it so you can walk away, you don't have to make wear & tear repairs, if you don't like something the lease does end & you can move again, if you are having neighbor problems your lease will end & you can move.
Leasing Cons: Paying your rent goes to the Owner of the home & not to something you own yourself, pet fees & pet deposits are extreme but justified, you will be in a contract for the duration of the lease, sometimes Homeowners do not care for the home & do not help to maintain it while you live there, you may be inspected regularly and you need to maintain cleanliness & make repairs to things you do break.
If you are considering buying a home your credit score is very important. One of the first things you need to do is talk to a lender. You can look at houses online all day and find a handful you really are intersted in but if you think you know how much a bank will lend you to buy a home that number might not be 100% accurate. The only way to be sure & to be taken seriously is to have your PREQUALFIED LETTER from the LENDER in hand and ready to go. This is one of the biggest purchases of your life taking it seriously is really important. Some home owners would prefer not to show you a home until you are prequalified. It could mean wasting time looking at houses a bank might not lend money to you for. So, why waste your time at all. I say be prepared, it helps make this already tedious process go so smoothly! The only way to ensure your credit score is preventing you from buying a home is to call the LENDER. We are talking about 15 minutes or less to get an idea if you can move forward. Why Rent when you can BUY!
Homeownership Pros: no pet fees, no pet deposits, the home is YOURS, you have freedom of ownership.
Homeownership Cons: perparing for maintenance of the property (a/c repair, water heater repairs etc, grass mowed etc) financially, in a Homeowners Association you have to get approvals for all kinds of changes or additions & it can limit what you park outside your home or what you do at your home, neighbors you may not appreciate.
If you are considering selling your house you may not think that anything could hold you back. Some things to consider are if you have any outstanding notes on your home. Something to think about is if anyone has put a lien on your home or is the Title of your home sitting clean and clear. Sometimes if you had any construction done on your home and you had any issues with the contractor they could have pulled a lien on your home that you don't even know about. It's worth taking a look into. Also, something to consider is if your home went through a bankruptcy. If it has you need to talk to your bank first to make sure you can sell it at this time. Have you been late on your mortgage? If so, this may prevent a sell. You need to know if you are late on your mortgage.
Tips: Pay off debt. Incru less debt. Save money. Work on fixing your credit score. Don't stay late on bills - get ahead. Get renters insurance if you have belongings. Get home warranties if you are renting your house out; or right before you buy / sell. If you are about to buy a home don't buy anything in high dollar prices until after; example - don't buy a car before you're about to buy a house.
All information is listed to help guide you in your process.
They are an Opinion Only. Use the information as you may need.