Cost of Renting vs Buying a Home
Home Buying Expenses
When it comes to moving to a new area, it can be overwhelming trying to decide if you want to buy or rent your new home. If you are looking to do a move within one month, please read to help you in your adventure.
Will you be renting your new home?
- It is recommended that you rent if you will be living in the area for less than two years. Our market is great, however, if you try to sell your home after owning it for two years, chances are you will not make the profit that you will want. Investors are always encouraged to buy regardless of how long they will be in the area.
- To find your rental, you can look at rentals on a Monday, and possibly move into the home that Wednesday. Rentals depend on when the current tenants will be out.
- Money you will need to rent - first and last month's rent, pay credit report fee, money to switch over your utilities.
Will you be buying your new home?
- Buying a home can be a great investment for you/your family.
- You will need to talk to a mortgage lender before heading out to look at homes. It is important to know if you qualify for home loan before you look for a couple reasons: 1. you don't want to be looking out of your price range, 2. if you end up not qualifying you just wasted your time and your Realtor's time, 3. if you find your dream home, an offer cannot be submitted until you get your pre-approval letter to submit with your offer, leaving an opportunity for someone else to make an offer on that home. A good Realtor can recommend trusted mortgage lenders. - Personally, I have one that I HIGHLY recommend for VA Home Loans - Conventional Loans - FHA Loans - USDA Loans
- Money you will need to buy a home - Earnest Money Deposit ($500 under $200,000, $1,000 over $200,000), appraisal fee $450 (needed within 1 week of offer acceptance). When using my recommended lender, many times you will not bring money to the closing table between negotiating in closing cost fees from the seller, and a lender's credit. Unless, you have a down payment that needs to be paid.
- You can start looking at homes on April 1st, find the home you want by April 2nd and close on your new home as fast as 3 -4 weeks. Sometimes, the home buyer can take possession of the home prior to closing, depending on the seller's situation.
- Within 1 day after closing on your home, you will need to pay to get the utilities switched over into your name. Some water companies need a deposit to turn your water on. ONWASA's deposit ranges from $150 - $300 depending on your credit score. This money is refundable in three years if you are on time with all of your payments.
Will you be living in base housing?
- Call the housing office before relocating to see if there is a waiting list, and how long it is.
The Jacksonville, NC area has many great benefits to home buying. If you would like to take a look at homes on the real estate market for sale, take a look below. It would be my pleasure to represent you in the purchase of your new home.
Also, if you are buying a home from overseas, read my information on buying a home "site-unseen."