Making the Transition From Renting to Homeownership, Part 1

Are you tired of renting continuously for your living situation? Whether in an apartment, condo or even a rented home property, those in this position are often looking for the ideal opportunity to make the leap to eventual homeownership, which comes with several major financial and other benefits.

At Altius Mortgage and our partners at Mortgage Ogden, we’re happy to offer a wide range of ideal first-time homebuyer mortgage options, from conventional loans to FHA loans, VA loans and several other specialty programs meant to assist those making the jump from renting to owning. Not only this, but we’ll also assist clients with the transition from renting to homeownership, one that can be a struggle for some if they don’t have the right guidance. This two-part blog series will go over all the major touch points you need to know here, from why it’s beneficial to make this move to the practical steps you should be following while doing so.

Why Some Remain Renters

Firstly, it’s important to understand the reasons why many people remain in the renting cycle instead of purchasing a home. Two general situations to consider here include:

• Simple finances: For many, there’s a desire to own a home – but not the means, namely the required funds to do so. Important financial areas here include credit score and history, down payment savings and enough income to be able to make monthly mortgage payments consistently. This is one area where working with our loan officers may improve your prospects significantly.
• Flex: For others, it’s more of a choice to remain in a rental situation, one that’s based on their day-to-day needs. Some people travel around a ton and relocate every few years or even more often, whether for work or personal desires. In these cases, remaining in a more flexible rental situation is often the way to go.

Benefits of Owning a Home

Now, the above stated, there are a few specific benefits to transitioning into homeownership:

• Financial stability: While it takes crossing some financial benchmarks to enter homeownership, the resulting benefits are vast once you do. You don’t worry about rising rent or finding a home, plus can capitalize on the equity you build up in your home – which is really an investment in your future as much as a living space.
• Community: Owning a home allows you to set down your roots in a home you can stay in for many years, learning about the community and building relationships with neighbors.
• Family themes: There are also several ways homeownership benefits growing families, from additional space to consistency in school district, familiarity with the local surroundings and more.

Ideal Timing for Homeownership Transition

A common question we get from potential first-time buyers: When is the right time to make the move to owning a home? Here are a few benchmarks to consider:

• Your credit score should be at least 580, the minimum threshold for qualifying for an FHA loan.
• You should have steady income and be prepared to settle down in a single location for multiple years.
• Your debts and expenses do not take up too high a portion of your income, allowing you to manage mortgage payments as part of your future finances.

For more on the transition from renting to homeownership, or to learn about any of our mortgage rates or services, speak to the staff at Altius Mortgage today.