There are advantages to renting an apartment or house in Albuquerque. It may allow you the freedom to move when you want to and relieve you of the responsibilities of home ownership. At some point, most people in Albuquerque would prefer to own their own home. Investing in a home is a good way to build financial security. You build equity in your home when you pay down your mortgage. You can use this resource later in life.
Deciding to make the jump from renting and owning a home is a major decision. Here are some signs you’re ready to make this jump.
Tired of Rising Rent
Rental prices are rising across the nation, and Albuquerque is no exception. The average rent in Albuquerque is $921 for about 800 sq ft, which is an increase over last year of 6%. 23% of rentals in Albuquerque range from $1000 – $1500. There’s no sign that rental prices are going to stop increasing.
With a mortgage, you may pay even less than that per month, depending on your credit history and budget. Plus, all of that money goes toward the equity. You are basically paying yourself (and yes, the bank), rather than a landlord.
Your Credit Is Improving
Low credit scores keep many people from qualifying for a mortgage. If you have had a lower score in the past and have been working on improving it, now may be the time you can qualify for a lower interest loan, along with a lower down payment.
You’ve Saved Enough for Taking Care of a Home
As a renter, if something breaks, your landlord has to take care of it (hopefully). There are also other costs your landlord takes care of, such as taxes, maintenance, and insurance.
When you buy a home, all of these costs will be up to you to cover. This isn’t meant to scare you away, it’s just a matter of fact. If your income has increased and you’ve been able to save, perhaps you’re in the position financially to handle the costs of owning a home.
You Can Afford the Down Payment and Closing Costs
Normally, you need to put down 20% for a conventional home loan. Yet some loans, such as mortgages insured by the Federal Housing Administration, only need 3.5% down.
Closing costs typically equal 2 percent to 7 percent of the property’s sale price, but these costs can be negotiated. If you can afford the down payment and closing costs, this is another great sign you’re ready to buy a home.
Making the jump from renting to buying is something that we’ve helped many home buyers in Albuquerque accomplish. If you feel you’re ready to own your own home, contact us today to talk about your options.
Make sure to join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.
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