Should You Buy or Rent a Plano Home
Here are some ways to tell if renting or buying may be best for you. 
Bad Credit – Good CreditHow does your credit score look? If your FICO score is below 620, you're not going to get the best interest rates for a mortgage, in fact, a low score could put you into the hands of a sub-prime lender with higher rates and fees. · You can order your free credit report from all three major credit bureaus.· If you want to buy a home and you have bad credit, you should work on repairing it before applying for a mortgage. · Four late payments may be enough to disqualify you from obtaining a home mortgage. High Debt RatiosLenders consider two types of ratios: front end and back end ratios. Your front end ratio is your mortgage payment, plus taxes and insurance divided by your monthly salary. Your back end ratios add your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for a mortgage. Relocation - Job Instability Is your job secure, how secure?· Is Your Job in Jeopardy?
Is your company laying people off? Could you be let go and, if so, how hard would it be for you to get another job, making the same money, quickly? · Relocation.
Are you likely to be transferred to another area within the next couple of years? If you had to sell your home due to a job transfer will your home appreciate at least 10% to cover the cost of selling; if not, you would lose money on the sale. Maintenance Retain the services of a professional to guide you through the process. It may be a good idea to look at some homes to find a great value in a home.Homes require maintenance and upkeep. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers cannot afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home. When Renting Costs Considerably Less Does it make sense to buy or rent? If your mortgage payment would be three times the amount than you would pay for rent, it may not make financial sense for you to buy a home right now. Example, if it would cost you $2,500 a month to rent what would cost you $7,500 per month to own, does it make sense to pay than much more each year more to home? If you are in a 35% tax bracket, you might not be able to recouping the difference you pay towards your home. If your deductible expenses are $4,000 a month; 35% of that is only $1,400, which would be your true tax savings per month. Would you spend $4,000 to save $1,400?
Bad Credit – Good CreditHow does your credit score look? If your FICO score is below 620, you're not going to get the best interest rates for a mortgage, in fact, a low score could put you into the hands of a sub-prime lender with higher rates and fees. · You can order your free credit report from all three major credit bureaus.· If you want to buy a home and you have bad credit, you should work on repairing it before applying for a mortgage. · Four late payments may be enough to disqualify you from obtaining a home mortgage. High Debt RatiosLenders consider two types of ratios: front end and back end ratios. Your front end ratio is your mortgage payment, plus taxes and insurance divided by your monthly salary. Your back end ratios add your monthly debt payments to your PITI payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for a mortgage. Relocation - Job Instability Is your job secure, how secure?· Is Your Job in Jeopardy?Is your company laying people off? Could you be let go and, if so, how hard would it be for you to get another job, making the same money, quickly? · Relocation.
Are you likely to be transferred to another area within the next couple of years? If you had to sell your home due to a job transfer will your home appreciate at least 10% to cover the cost of selling; if not, you would lose money on the sale. Maintenance Retain the services of a professional to guide you through the process. It may be a good idea to look at some homes to find a great value in a home.Homes require maintenance and upkeep. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers cannot afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home. When Renting Costs Considerably Less Does it make sense to buy or rent? If your mortgage payment would be three times the amount than you would pay for rent, it may not make financial sense for you to buy a home right now. Example, if it would cost you $2,500 a month to rent what would cost you $7,500 per month to own, does it make sense to pay than much more each year more to home? If you are in a 35% tax bracket, you might not be able to recouping the difference you pay towards your home. If your deductible expenses are $4,000 a month; 35% of that is only $1,400, which would be your true tax savings per month. Would you spend $4,000 to save $1,400?
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