Due to the economy over the last few years the number of single-family renting households has exploded. It doesn’t appear to have an end in site either. Rental vacancy has dropped from 8.4% to 4.1% in the last 6 years and rental prices have risen by over 3%. In general people rent because of their current credit score.
With the 2008 crash many people watched their credit scores tumble to record lows. Whether they got behind on credit cards, had a short sale or foreclosure, or had a car repossessed. With this dramatic change in scores not only is it hard to qualify for a home purchase it can cause extra stress and embarrassment.
Luckily you don’t have to rent. There are ways to repair your score so you can qualify to purchase again. The FEN team has a wonderful program for you to utilize. Consumers have the right to restore their score and qualify to buy again. United Credit Education Services has a great program you can utilize at www.united-credit.org Just ask our team members for assistance.
While your credit score is climbing renting may be your only option. So while you are renting it is recommended that you spend 25%-30% of your monthly income. Unfortunately over 25% of people who rent are spending over half of their monthly income.
Never sign a lease without visiting the location first. Loud neighbors in your building, improperly working appliances etc can lead to bad experiences. Also make sure you are comfortable with all the lease agreements before signing. If you plan on painting and then realize after signing you can’t it can be a problem. Also if you are hoping to buy soon make sure you understand the early out clauses in case you have to use them.
Also be sure to take the steps necessary to secure your deposit return. Take pictures before moving in and when moving out so you know for sure the state of repair everything was in before you moved in.
Renting is a great way to live while you are rebuilding toward home ownership. However you can see that it is more expensive than owning a home in a lot of cases. With the ability to get your score repaired there is no reason to rent forever. Be smart about your renting and work quickly to get get into your first home or your next one.
Click below to learn how you can prepare for homeownership and STOP RENTING!!!