Why Renters Should Consider Buying

Dated: August 6 2019

Views: 972

Incrementally taller stacks of coins sprouting leaves, indicating how money grows over time.

Many Nashville renters qualify for a mortgage but don't realize it, and could be building equity in a home of their own.

Helping Renters Assess Their Options

An important part of my work as a Realtor® is helping renters find a place that meets their needs. Equally important?  Making sure would be renters have checked whether they could (and should!) buy instead.

While homeownership isn’t always feasible, it usually has a lot of advantages.  First and foremost, when you pay a mortgage, you’re building equity in an asset.  This sort of wealth building doesn’t happen when you pay a landlord rent.

But let’s pause for a moment, and tackle the elephant in the room - Nashville home values have skyrocketed in the last decade, and many people aren’t renting by choice.  They’d choose to be owners - if they could.

There’s good news though.  For starters, many Middle Tennesseans today who don’t believe they qualify for a mortgage actually do.  Each loan program has its own set of requirements, and the credit score, downpayment, and eligibility criteria vary.  As a Realtor®, I help would be buyers determine what is essential in a home, and then, working with a lender, we see which loan programs could be utilized that fit the buyer’s unique circumstances and needs.

Second, a great many people who are renters would be qualified to buy today - if they’d started working with a Realtor® or lender three months to a year ago.  Why?  Because that lender can assist the renter in getting their credit rating up, in resolving old debts, and giving them practical advice on things to avoid doing that would negatively impact their credit.  The best part?  A good lender will give you their time and this advice for FREE - because they want to earn your business when you do buy.

Finally, the double edged sword of Nashville home values going up is on the whole, a good thing.  Nashville, and by extension, Middle Tennessee, is booming, and people are moving here from all over the country.  We’re facing a shortage of affordable houses - that’s true - the builders can’t put them up fast enough.  But that itself is a strong reason to consider buying - your home would be likely to keep appreciating in value, and you’d be building equity.  Renters, however, will be charged market rates by landlords, and those are likely to keep going up.

If you’d like to buy a home, but don’t know that you can afford to, let’s talk.  Working together with a trusted local lender, we can put together a game plan to make your homeownership dreams come true!

Blog author image

James Houk

A graduate of MTSU, I worked on local independent films before becoming a REALTOR®. And as different as those jobs may seem, they’re both really about the same thing – taking people&rs....

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