How long do you plan on owning this property?
If you plan on owning 3 years or less, then I would recommend to continue rentingâ€¦â€¦..
Anything longer than that, buying becomes a viable option but all your unique needs should be taken into consideration to get a big picture.
As far as what you should buy, well that will depend on many aspects of you specific criteria in a home and location of that home. The first most important aspect will be what price range you can afford and then go from there.
Find a great agent and a good lender to take you to the next steps.
Below is a link to an article I have written that may be useful to you, explaining what â€œBuyer Bewareâ€ is in the state of Va.
Buying a home is an important step. however to buy a home you must have a series of variables aligned and it seems that you do have it at this time. So, that is a clear advantage.
There are a lot of factors to consider, how much are you paying in rent? how much will you like to pay in your mortgage? Take into consideration the tax break that you will get with the mortgage that you are not getting renting.
Market definitively is on your side, most likely prices will stay in the same area for a while so no need to rush based on that. The interest rates at this moment are great, this I think it will go up sooner than later.
What I would suggest you is to start looking into the market with no rush, get familiar with neighborhoods and prices. By doing so you will get an educated eye and you will determine if an opportunity comes by.
From the information you've posted, you should be easily able to qualify for a mortgage loan, and that would be the first step. Find a local lender(s) and go through the pre-qualification process. Ask for a worksheet outlining all the costs in a transaction for a single family home in the price range you think you'll fit. Once you've had an opportunity to review this data, you'll know where your comfort zone lies in terms of price. Then interview Realtors and find someone you think you'll work well with. Remember that the buyer's agent's commission is typically paid from a split of the listing agent's commission, so under normal circumstances, there should be no cost to you for expert representation. There's a step-by-step on my website.
As long as your debt ratio is within limits, it's not anything to worry about. A good lender can sit down with you and walk you through the pre-approval process so you know what you qualify for. Based on your credit, income, assets/down payment you will qualify for "X" loan amount. It's important to also figure out what your monthly budget would be for a mortgage and I make sure my clients take into consideration taxes, insurance, mortgage insurance(if any), HOA/CONDO fees(if any) and the additional expenses of owning a home like lawn maintenance, utilities, unexpected repairs, etc. That is in addition to all of your other living expenses!
So, you can tell a lender you would like your total monthly mortgage at "X" and based on your credit, income, assets, down payment, debt ratio, property type, tax rate, estimated hazard insurance he should be able to give you a sales price/range to stay in.
If you would like more details on the pre-approval process take a look at my article here:
For more questions or to schedule a free consultation contact me at your convenience.
Elliott R. Oliva
NMLS Lic. #353884
Primary Residential Mortgage
"Se habla Espanol"
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Yes you may have more privacy..but with the income you are speaking of..the location(s) available for an affordable detached product may not be as good as an affordable attached product.
If you would like to do a comparison..feel free to contact me and I would be happy to show you.
Erik J. Weisskopf, ABR,CDPE,CRS,GRI
I love investment property, so I try to structure my client's purchase to be able to rent at a profit should you have to relocate before you originally planned on leaving. This just takes an experienced agent to guide you through the economics of what makes a smart purchase for both a principle residence and an investment property.
All of that aside, you will get financial benefits from being a home owner versus a renter. The Housing Affordability Index is at an all time low and Interest rates are still quite low. There are many great loan products that allow buyers to purchase with less than 20% down these days.
The best step is to sit down with an agent and lender to discuss all of the nuances of your situation in person. This should be a no obligation, detailed, meeting to help guide you into making the smartest decision for you. A lot of renters really should remain renters and a lot should be buying; we're here to help you decide which category best fits you.
Good luck with your decision, Brenda Stone
There are a number of people in your same boat, single incomes that buy homes. Buying a home is a big decision that needs to be thought and weighed out. There is more than the financial decision that goes along with buying a home, there is also the social and lifestyle decision. How long do you plan to be in the house? If it is more than 3+ years than buying, especially right now with rates as low as they are would probably make good financial sense if you plan to stay in the area. In addition there is the financial benefit of home ownership with tax breaks. Right now with it being a strong rental market, you might be able to get a mortgage for the same or less than paying for a rental. Other things to consider: How much would/do you qualify for? Have you thought about neighborhoods you want to live in? Features that you must have in the home vs would like to have?
I just had a client, who is a single individual purchase a single family home, so yes it can and is done all the time. I would recommend you talk to a lender to two so see how much you can get qualified for and what the payments would be, so you can start looking at places and know what is in your price range.
Please feel free to drop me a line if you have any questions or need any assistance.
Most of what I will talk about has to do with finances.
Consider the cost of renting vs. owning. At 4%, 30 mortgages are almost free money - inflation is higher than that and your interest rate is locked in for 30 years. Your rent will always go up and you get nothing back when you leave. Its the Federal Reserve's and Government's policy to inflate so your cash will only be worth less in the future, not more. Real estate is a hard asset with intrinsic value that will adjust (up) with inflation. Real Estate is a great inflation hedge.
Consider taxes. At $80k a year with no deductions, I'm sure you are paying a lot in taxes. With the mortgage interest tax deduction, you will shelter some of your income from taxes and put the money to work for yourself paying off the home.
Make sure you know about the FHA 203k loan. Its a home renovation loan that allows you buy a home as is and include all the costs of repairs in with one easy mortgage. I've helped clients creates tens of thousands of dollars of equity with this loan program. Before you look at houses, make sure you know about this loan program. Not only can it give you an incredible financial boost by moving in with equity but it can create the best possible lifestyle for the least amount of money because you can move into a brand new renovated home rather than one that needs a lot of "sweat equity." With this loan, you can have both - new home and equity.
In many cases, its also cheaper to buy than rent. There are two things to consider with that benefit. First, its cheaper for you to buy than rent. Second, you now have an asset that you can rent for positive cash flow if you decide to move, relocate, get married an buy a new home, whatever the case may be. Third benefit of that is with a rental property, you can form a business around that rental property and save even more on taxes.
I talk a lot about taxes because its not how much you make, its how much you keep.
With all that said, home ownership is a lifestyle choice so its not just about the money. Its about the lifestyle you want to have. Only you can put a price on that. Good luck. I'd be happy to talk to you more about 203k homes or buying in general. Check out the website below for some before/after pictures and a great renovation video of some of my clients homes.
With housing prices coming down as they have and the existance of great numbers of opportunities to purchase at excellent savings many people are seeing this as the perfect time of getting into home ownership. However, this decision comes down to your needs, desires, and financial means.
You may find it helpful by meeting with several loan specialists to find out about programs and rates that will suit your needs...This may clear the way for you to make the right decision.
Hope this is helpful.
Diane G. Murphy, Broker
DGM Properties, Inc.
Licensed in Virginia, Maryland and DC
540 878-9573 (cel)
Weichert, Realtors - Old Town
121 N. Pitt Street
Alexandria, VA 22314
Dwayne and Maryanne Moyers
Top 2% of Realtors Nationwide
Avery-Hess Realtors (6 Offices in Northern Virginia)