According to Trulias recent Rent Monitor, in my area of Seattle, rents rose 8.50% from a year ago. Rents will only continue that trend and keep going up with shrinking vacancy rates
So why aren’t more people considering buying a home? Per Trulia’s chart below, if you get a low down payment loan, are in the 25% tax bracket and plan to stay in the home for 7 years, it is 21% cheaper to buy than to rent!
Part of the answer is that people are getting misinformation from the media about what it takes to buy a home. Did you know that you don’t have to have 20% for a down payment? There are loans available with 5.0%, 3.50% or zero down payment! Have you heard that loan guidelines are very tight and if your credit isn’t perfect, you can’t get approved? Again, this is a myth, there are programs available when your credit and credit score aren’t perfect. Yes, you can no longer just “fog a mirror” and get qualified for a mortgage, but it isn’t as bad as the media would have you believe.
Interest rates are historically low, now is a great time to take advantage of them and become a home owner……and pay less than you would renting! Contact your experienced mortgage professional to get pre-approved and then you will be ready for your realtor to help you find your dream home!