HOMEOWNERSHIP SERIES | ISSUE 1

Before You Renew Your Lease...

Five Questions Every Renter Should Ask Before Deciding to Buy 

If you're renting and wondering whether homeownership could be in your future, this guide was written for you.

Renewing your lease may seem like the easiest option—but before you sign for another year, it's worth taking a few minutes to explore your choices. Buying a home isn't the right decision for everyone, but understanding your options now can help you make a confident, informed decision when the time is right.

1. Could I Qualify for a Mortgage?

Many renters assume they need perfect credit or a 20% down payment to buy a home. In reality, there are a variety of loan programs available, and some require down payments as low as 3.5% for qualified buyers. Depending on your situation, you may also qualify for grants or assistance programs that can help with down payment and closing costs. A conversation with a trusted lender can help you understand which options may be available to you.

2. What Monthly Payment Would Fit My Budget?

Your monthly housing payment is more than just the mortgage. It can include property taxes, homeowner's insurance, and possibly HOA or condominium fees. Housing costs also vary considerably from one community to another, so understanding what fits comfortably within your budget—and where you may be able to buy—is an important first step.

Many buyers are surprised to learn that a monthly mortgage payment can sometimes be comparable to their current rent.

3. Would Buying Cost More—or Less—Than Renting?

Every market is different. Depending on home prices, interest rates, rental costs, and how long you plan to stay, buying may be more affordable than you think—or renting may still make the most sense.

One important difference is that homeownership gives you the opportunity to build equity in two ways: by paying down your mortgage over time and through potential appreciation in your home's value. Historically, our local real estate market has appreciated over the long term, although appreciation is never guaranteed and market conditions vary.

When you rent, your monthly payment provides a place to live, but it does not build equity for you.

4. What Could Happen If I Wait Another Year?

No one can predict exactly what the market will do. Mortgage interest rates, home prices, and rents all change over time. Waiting may work in your favor—or it could reduce your purchasing power. Understanding today's market can help you make an informed decision based on your own goals and timeline rather than guesswork.

If you're planning to buy within the next one to three years, understanding today's market can help you prepare—even if you're not ready to purchase yet.

5. What's My First Step If I Want to Learn More?

The best first step isn't touring homes—it's having a conversation. Whether you're hoping to buy in a few months or a few years, understanding your finances, your goals, and your options today can help you prepare with confidence when you're ready.

You don't have to be ready to buy today to start preparing for tomorrow.

Continue Your Journey to Homeownership

This is the first in my Homeownership Series—a collection of practical guides created to help you navigate the home-buying process with confidence. Be sure to visit the Buyers section of my website as new Homeownership Series guides are added.

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