Should You Buy Or Rent? Your Pasadena Realtor Has Some Answers

Image via Wikipedia So you have moved just recently in Pasadena and you want to have a home for you and your family to live in. However, the question now is, “should I buy a home or rent it”? In Pasadena, there are a lot of properties that you can either buy or rent but when it comes to deciding between both, which should you choose? The thing is that you have to weigh your decision first and you can do so by seeking the help of a good Pasadena Realtor. In my case, I have sought the help of Michael Gentile, a good Real Estate Agent and a broker to help me decide whether I should buy or rent my own property which is near the Hilton Pasadena where I worked as an HR Manager.

My Pasadena Realtor told me that before I get to decide to own or just rent a home, I need to look into the financial aspect of my life. After all, he informed me that not everyone is capable of owning a home and that in order for me to find out whether I am qualified or not, he explained to me the different aspects that will help determine whether I am qualified to buy a home or just rent one.

Image by army.arch via Flickr Having A Bad Credit Report

Having a bad credit report, according to my Pasadena Realtor is one of the most important reasons why you are not able to buy your own home. If you have a FICO score that is below 700, then you will not be getting a good interest rate if you apply a loan.  You probably won't get a loan at all. Thus, the best thing that you need to do is to just rent a home. However, if I have a bad credit and would want to buy a home, then my Pasadena Realtor advised me to polish my credit score first. Fortunately for me, I have a good credit score thus I have an option to buy a home, and I want to.

Another thing that my Pasadena Realtor looked into is my debt ratio. The debt ratio is the ratio between the mortgage payment, taxes and other accountabilities over the monthly salary thus a higher ratio means that your salary is not enough to pay for all your accountabilities much more pay for a home loan thus you end up not being able to qualify for a housing loan.

Image via Wikipedia Stability Of The Job

Another thing that I should look into according to my Real Estate agent is the stability of my job. I need to consider whether I have a stable job or not and if my job will be jeopardized in the future due to economic instability. If you think that your job is stable enough for you to be able to sustain a housing loan, then you can always buy a home. However, if there are unforeseen changes in your job, then you can always continue paying for your home as long as you can find a good replacement for your job. Unfortunately, relying on unemployment compensation is not enough to cover the mortgage payment for your home.  You generally need to be employed at the same place for 2 years.  Doctors, lawyers, and other high income earners can be denied a loan these days just because of this problem.

Relocation

Another aspect to consider that will determine whether you are qualified to buy a home or just rent one is your plan for relocation. If you are likely to transfer to another city within the next two years, then the best option for you is to just rent a home. According to my Pasadena Realtor, if you buy a home but has foreseen your relocation due to the dictates of your job, you may have to discount the price of your home for a quick sale. In fact, if you buy a home, you need to make sure that you will be staying in that particular home for a long period of time.

Maintenance

According to my Pasadena Realtor, when you consider buying a home, you need to make sure that you are capable to handle the repair and maintenance costs. In fact, you should save 5% of your income monthly in order to be able to save money for the inevitable repairs that your home will need. In most cases, these repairs require you to spend a lot of money thus, if you think that you cannot handle these costs, then you can always rent a home instead the fact that all costs for the repairs will be incurred by the landlord.  The HOAs for condos does this for you.

So you see, when it comes to deciding whether or not you should buy a home or just rent one, you need to determine your stability first. Moreover, buying a home is not as simple as getting a loan and paying for the mortgage within the next 25 years. There are some extra costs that are incurred once you buy a home.

During the process of deciding whether or not you should buy a home, it is important to be able to consult a reputable Pasadena Realtor to help you see the big picture. Although you may have a stable job, there are still a lot of factors that might affect your decision when it comes buying or renting a home. "Can you get and afford a loan?" is a question that can only be answered with some work and internal dialogue.  Your Pasadena Realtor is knowledgeable enough to give you the information that you need in order for you to make the right decision. That is just what I did and now I am happy to say that I have been enjoying the home that I bought without any problems at all.

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