Is Buying Right for You?
Homeownership can build long-term wealth, but renting is sometimes smarter. Evaluate honestly.
Renting vs Buying
| Factor | Rent Favors | Buy Favors |
|---|---|---|
| Time in area | <5 years | 5+ years |
| Flexibility | High need | Low need |
| Down payment | Unavailable | Available (>10-20%) |
| Local market | Low rent/buy ratio | High rent/buy ratio |
| Maintenance appetite | Low | High |
Down Payment
- Conventional: 5-20%
- FHA: as low as 3.5%
- VA (veterans): 0%
- First-time homebuyer programs: vary by state
True Cost of Owning
Beyond the mortgage: property tax, homeowners insurance, HOA (sometimes), utilities, repairs (budget ~1% of home value yearly), PMI if below 20% down.
Mortgage Types
| Type | Note |
|---|---|
| 30-year fixed | Lower payment, more interest over time |
| 15-year fixed | Higher payment, less total interest |
| ARM | Variable rate after initial period |
Steps
- Save 3-20% down + closing costs (~3-5%)
- Build 700+ credit
- Get pre-approved (not just pre-qualified)
- Shop with a buyer's agent
- Inspect before close
Common Pitfalls
- Buying more house than you can afford
- Ignoring maintenance costs
- Draining all savings on down payment
Practice tip: The monthly payment should feel comfortable with property tax and insurance — not stretch your budget.