If you are a renter, you are faced with a decision each year: whether you should stay put in your current apartment, or move to another abode. While it is only natural to consider moving into the role of a homeowner after a few years of renting, this is something that should be given careful consideration.
While cottages in the Lake District are exciting to live in, they may also make the most sense for certain people. Before you move into home ownership, you need to ensure you are ready for this huge undertaking. A few reasons that you may want to consider renewing your apartment lease are highlighted here.
1. Less than Perfect Credit
One of the first things that a mortgage lender will consider is your track record for payments on credit accounts and loans. If you have poor or bad credit, you may find it nearly impossible to obtain a home loan. Banks and other lending institutions want to see a history of responsible and on-time payments. This is typically a good indicator of how you will handle a home mortgage. If you have bad credit, you need to put in the time and effort to correct the issues and get back into good standing with all of you creditors prior to contacting any potential lenders.
If you are in the market for buying a home in the next few years, then renting for a while is a great way to build you credit and save money over time. Sticking to a budget is a great way to make the renting experience a constructive one. Taking some time to save money will also give you a chance to figure out what type of residence you want to buy.
2. You have a Significant Amount of Debt
Do you have a hard time paying your bills each month? Do your outstanding debts eliminate your paycheck? If so, then adding a mortgage into the mix is likely not a smart option. Once you pay the debts down some, and have at least some disposable income left, then it will be a better time to make the transition from renting to home ownership.
The only way you will be able to pay down this debt is by finding a living space that is affordable. Before renting a particular home, apartment or cottage, you need to take some time to do your homework. Rushing through this important process will only lead to mistakes being made along the way.
3. You Don’t have Money Set Back for a Rainy Day
One of the appealing benefits of renting is that when something happens or goes wrong, the landlord will be the one to fix and pay for the problem. When you are a homeowner you will be responsible for anything that breaks or stops working. From broken water heaters to leaking toilets, everything will have to be fixed out of your own money. If you do not have any funds to support these repairs, you should probably wait to dive into home ownership.
4. Unpredictable Job Location
There are some jobs that will require you to move around a lot. This means you will need to avoid buying a home until you are certain your location will not change. By renting a home or cottage, you can get the living space you need without the commitment of a mortgage. Generally, you will have a variety of housing options to choose from in your area. Taking the time to visit each of these options is a great way to figure out which one is the right fit. The time you invest in this process will more than pay off.
There are a number of perks to renting an apartment. Next time your lease renewal comes up, be sure you consider all of the factors that will influence home ownership.
