Home Buying in 61701>Question Details

wwilkers, Other/Just Looking in Bloomington, IL

Should we buy a home or stay in our rental?

Asked by wwilkers, Bloomington, IL Wed Sep 5, 2012

My husband and I are a young couple, newly married and newly out of college (I am still finishing up my final year in fact). Prior to moving in to our apartment, we had explored the option of purchasing a home, with interest rates being so low. We had been preapproved for a mortgage, but with the wedding and starting our lives and being in need of a place to live, we had no time to really search we decided to settle for a rental for the time being. We have money tucked away for a possible down payment and we both have credit scores in the excellent range. My husband is gainfully employed (60k). Our rent is moderate: $700 a month. Our property was recently sold to new landlords and we are looking at a likely increase in rates, but we don't know how much. But, we are concerned about the extra liability of home owning. On the flip side, we know we are going to be staying in the area and don't necessarily want to keep dumping money in to a rental. Should we take the leap and buy a home?

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You should meet with a local and trusted loan officer who can prequailify you at no cost. they can go over the cost of home ownership nd you can compare to renting. Rent equals 0 equity where in a market that is increasing in value buying equals equity for your future. Only you can weigh the data and decide what is best for you.
1 vote Thank Flag Link Wed Sep 5, 2012
Hi, my name is Greg Zavitz, and being a Real Estate agent/Realtor I always think it is best to own a home, especial now with rates at historic lows. I have been marketing real estate and helping buyers find their 1st home for 27 years and have never seen a better time to buy. There are some great deal to be had, interest rates are soooo low, and there is a good supply of inventory. I think that if you are going to be in the area for at least 2 more years and can afford to own a home, buy one. You should be relatively safe on the downside and have a huge possible upside potential. As you know, there are no guarantees, but Bloomington Normal's market is very stable, has been and should continue to be. Please contact me if I can be of any help to you or if you have further questions. I would love to show the both of you some homes.

Greg Zavitz
0 votes Thank Flag Link Wed Sep 5, 2012
It is always better to buy rather than rent. Interest rates are low now so if your credit is good call a mortgage banker and see what he/ she recommends in terms of budget. Downpayment is important. Don't be fooled by the no money down loan. It can come back to bite you pretty hard if you have to move within about five years. If you need down payment assistance sometimes family can help. There are also many local grants that could apply to your purchase.
At the very least you should plan for an exploratory trip around town with an experienced real estate agent. A good agent will advise you well.
Not knowing where you live - would you consider a condominium?
0 votes Thank Flag Link Wed Sep 5, 2012
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