If you aren’t sure whether should buy a home or rent another year in Clarksville TN, the good news is the housing market and interest rates are fairly stable. By renewing your lease for one more year, you will have time to improve your financial situation. Also, paying your rent and utility bills on time can improve your credit score as well as prove to a mortgage lender that you can afford to buy. According to an article by Credit.com, there are ways to gauge whether you are ready to buy a home. Even if you can identify any financial signs that you aren’t prepared to buy this year, there are steps you can take while you rent in Clarksville TN.
- You don’t have a good work history
If you want to buy a home, it’s important to have taxable income. When you sit down with a lender, you need to show your tax returns with reported income. Freelancing and side jobs won’t hurt, but it helps to have a full-time job. While renting, secure a job so you can demonstrate a steady job history as well as reliable income. The taxable income you report will directly affect how much money the lender will loan you for a home.
- You have nothing in savings
The good news is you don’t need to save up tens of thousands of dollars to buy your first home. Fannie Mae and Freddie Mac offer a first-time home buyer program for people who have never owned a home as well as those who haven’t owned a home for the past three years. Depending how long it’s been since you owned a home, you could rent until you qualify. The program lets you make a down payment of just 3 percent of the purchase price. One way to save up for a down payment is to choose a rental apartment or home in Clarksville TN that costs $50 to $100 less than what you normally spend. In three years, you would have between $1,800 and $3,600 by saving the difference.
- You have a poor credit score
When it comes to your credit score, there are different reasons for poor scores. Whether you went through a debt consolidation program, bankruptcy, foreclosure, short sale or co-signed a loan for someone who didn’t pay the loan, you have major financial challenges. Fortunately, practicing good financial habits can reverse the damage. Most people have to rent for at least three years while they wait for major blemishes on their credit report to clear up. Some of the steps you can take include paying off credit card and auto loans, paying bills on time and refusing to co-sign with other people.
At Millan Enterprises, we can help you find an apartment or rental homes in Clarksville and Fort Campbell. Our licensed real estate agent can help you begin a house hunt, while our property managers and maintenance staff attend to your needs while renting. For more information, please contact us.