From Renting To Buying
HOW A- TEAM FLORIDA HELPS RENTERS BECOME BUYERS
Many renters do not know they qualify for a mortgage. Because of a credit problem – more commonly due to a short sale or even foreclosure – they are not aware that because their payment history has otherwise been stellar, that they can once again be qualified to buy, and move from renting to buying.
We have two solid examples: A young couple with a young child had been renting a two bedroom condo for $1250 per month. In this case they did save quite a bit of money. They were able to put 25% down on an 83,000, 1500 square foot condo with a pool, which turned out to be across the street from the daughter’s school. Sometimes the stars align…Their mortgage payment is $319.21 per month and their maintenance is $249. Add in the utilities and they are happy campers. The best thing about it is that the market has stabilized. With a yearly appreciation of 4-5%, in a few years they will have quite a bit of equity to put down on their dream house. They are no longer paying their landlord’s mortgage, they are paying their own.
Same story – different price point: A family that is currently renting a home for $2700 per month put 5% down on a 350K home. His total loan is 315K with monthly mortgage payments of $1596.06 per month, taxes and insurance come to roughly another $1000 and voila! Again, they are living the same life but in a home they OWN.
Both of these clients came to A Team Florida Realtor Associates looking for a new rental because their landlords were raising their rent. So many people have had to rent because of the market crash that most investors are buying properties to rent for a few years until the market goes up enough to make it worth selling. And remember that the interest part of the loan which is the biggest part of the monthly payment is a WRITE-OFF. Rent payments are not.