The North Atlanta housing market has seen steady improvement in home values over the last year as the local economy continues to grow. Surprisingly, metro Atlanta area rental rates have increased at a more rapid rate than home prices with some areas seeing 10% increases in annual leases. Most economists attribute this phenomenon to the reduction in single-family homes available for rent as landlords are selling properties now that home values have recovered.
Two Reasons Renters Think They Can’t Buy
Most renters would probably prefer to be homeowners but may feel they are not in a good position to qualify for a home loan. There are two primary reasons renters think that homeownership may be out of their reach. The first is they may believe their credit history would prevent them from qualifying for a mortgage. The second concern renters have is not having enough money saved up for a down payment.
Good News for Hopeful Homeowners
The good news is most renters are in better shape to buy a home than they may believe. While an adverse credit event may be the reason a renter has not pursued buying a home, the waiting periods after such an event are shorter than most people think. The requirement for a down payment should no longer be a barrier to homeownership. There are now a number of $0 down financing programs that will enable buyers to move into a new home with less out-of-pocket than signing a new lease!
It behooves renters to contact a mortgage professional before they sign their lease extension to see if, or when, they can buy a home. The sooner you get off the rental “escalator” the sooner you can start building equity in a new home.
Article By: Tana Hubbard
Evolve Bank & Trust