Buy vs. Rent
It has never been so profitable to buy a home instead of paying someone else's mortgage!!!
Costs when buying (approximately)
$500 Earnest Money Deposit
$200 Home Inspection
$175 Septic Inspection (if applicable)
$350 Appraisal
$1225 Total
With the current market situation, most sellers are willing to pay part or all of your closing costs, especially builders of new construction homes. Any inspections are up to the buyer, but I encourage all my buyers to perform a home inspection and septic inspection. You will only need $500 to get started! Some inspectors agree to get paid at closing, giving you more time to save money, or allowing you to add it into the closing costs paid by the seller. Appraisals have to be paid outside of closing at the time the service is provided, so with a best case scenario you will only need $850 to buy your home! And if you close on it before December 1, 2009, you will be elegible fore a $8000 tax refund!
Costs when reting (approximately with $700 rent)
$50 Application Fee
$700 Security Deposit
$700 First month's rent
$150 Pet deposit (if applicable)
$1600 Total
Your application fee and pet deposit will vary from company to company, and the pet deposit is non-refundable and applies to each pet. A best case scenario for a renter without pets is a startup cost of $1450. But keep in mind there are no tax savings (tax-deductible interest as well as tax credit for first time home buyers) or investment of your money (building equity). With the same monthly mortgage payment, $700, you could afford a home valued approximately $110,000 (outside city limits, 5% interest rate, no down payment). Click here to get your estimated payment!
Click here to read about 6 common mistakes home buyers make!!!
