Getting Off the Rent Escalator

    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 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 is Here

    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 home ownership. 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!

    Increasing-Gap

    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.

    TanaArticle By: Tana Hubbard
    Evolve Bank & Trust
    404.886.8199
    NMLS# 195097

    Trackback from your site.

    Leave a Reply

    Reviews on Zillow
    3203331
    "Tammy Roberts was a wonderful agent to work with. She was very knowledgeable in all aspects and I would strongly recommend her to anyone buying or ... more "
    5.0/5.0
    by zuser20161230122206903
    3178736
    "I am happy to say that my work with Debbie Williams went very well! I purchased a home in a seller's market, so in order to get the town home that I ... more "
    5.0/5.0
    by christinecarr3
    3171960
    "Adrienne is a super star! She was always there for me whenever I had any questions regarding the sale of my previous home or the purchase of my next ... more "
    5.0/5.0
    by jasonandtara1