Before You Buy
Many people think of owning a home as a very expensive endeavor,
while they think of renting as a cheap and convenient alternative.
This is far from the truth. Purchasing a home with a mortgage
may quite possibly be the same price or even less in cost
than renting that home or apartment.
Why? Well, look at it this way. When you are renting, you
are virtually throwing away money. Each month when you pay
rent, you will never see anything out of your check besides
the use of your apartment for that given month. Usually you
still have to pay utilities and other service bills in addition
to the rent. When your lease is up, you may get a deposit
back but sometimes repairing your home or apartment costs
almost as much or as much as the deposit itself!
Buying a new home can be costly, but mortgages can be very
reasonable. Most people who are renting have not even looked
into the mortgage rates or home buying options out there.
They are just assuming that they cannot afford a home! Assuming
may be foolish because there could be homes out there that
you are able to buy and pay off within a reasonable time frame.
The good thing about buying a home as opposed to renting
one is that you acquire ownership, or equity. Not only that,
but it is your home to do with what you please!
You can paint the walls, knock out doors, add a bar or a bath
or a closet, and, even, decorate the place without worrying
about holes or scratches.
Everything you are paying is going towards something. It
is not money you are throwing away. Also, when it comes time
that you want to sell your home some day, you may get a lot
more money than you originally paid for the home! That is
a pretty exciting thought, isn’t it?
Although there are sparks to purchasing a home rather than
renting one, there certainly are things that making home buying
a little more complicated than renting. It is definitely more
of an obligation. Your down payment on the home will probably
be much more than say, the deposit that you put down when
renting. You will also have to pay property taxes, homeowners
insurance, and most likely much higher utility bills.
You will also be paying a closing cost, which is typically
two to six percent of the loan amount.
If you are interested in buying after considering the pros
and cons, you should first try to get a mortgage quote. Chase
Manhattan Mortgage is the perfect company to contact for mortgage.
They will give you individualized and personal attention,
always providing friendly service and professional advice.
At Chase, you will be able to pre-qualify and be on your
way to buying a new home in no time. Once you pre-qualify
for your mortgage, real estate agents will take you more seriously
as a home buyer, and you will go into the home buying process
with a clear idea of what you can afford.