How Long Should You Rent Before You Buy A House?

There are many consideration to make before your should decide to buy a home. A home is an expensive purchase and thus, absent you having a large cash reserve, you are going to have to borrow the money to purchase your home. As such, you are going to have to consider your credit score, your monthly income, your monthly obligations, and the price range of homes that are within your economic range, to name a few. Additionally, depending on the current economic condition, your interest rate for your mortgage is another consideration. You also have to consider you job situation and whether it is likely you will move out of your current city or state. This consideration is important because if you need to sell you home in order to be able to afford to move, the status of the real estate market is going to dictate how quickly you can move.

If you discover that you cannot currently afford to buy a home, your alternative is to rent for the time being. This does not mean that you will never be able to buy a home. Renting for now simply means that due to your current financial or credit situation, you will have to refrain from purchasing a home. If this is your current situation, you may be wondering how long you have to wait until you can buy a home.

The answer to this inquiry depends on all of the factors discussed in the first paragraph. If you can financially afford to buy a home, have the credit in order to qualify for and obtain a loan (should you need a loan), and do not plan on making any long distance moves at any time in the near future, you should be in a position to buy a home. However, even if you are in position to buy a home, depending on where you live, there may not be any homes available for you to buy.

There are many cities and towns that are not expanding or have no room to expand, and as such, the total number of homes in that area remains constant. As such, you may have to wait for an opening or may have to look for a home in another location. Therefore, even though you are ready, willing, and able to purchase a home, the current real estate market may not allow you to do so.

If you can financially afford to do so, you should consider purchasing a home. Even though overcoming the financial and credit obstacles are the hardest burdens to overcome when purchasing a home, the current real estate market may be a factor that prevents your purchase of the same. If this occurs, be patient and maintain your financial and credit situation so that when a home becomes available, you will be able to purchase the same.

Financial Hardship and Homestead Laws

Many of us have faced times of financial hardship. In the current economy, real estate prices are in the toilet. If you bought real estate at the end of the most recent boom, you probably have negative equity in your investment properties. Additionally, you made a common investment mistake by buying when the market was hot, however, that is a talk for another day.

Many people are unaware of homestead laws. Homestead laws protect your primary residence from a forced sale due to outstanding debt, property taxes, judgment liens, etc. In fact, here in Nevada, a recent Court decision stated that judgment liens are void against fully exempt homestead property. It is the most inexpensive way to protect a large chunk, if not your entire home.

Homestead laws protect a certain value (be it equity) in your home. If your home is worth more or you have more equity in your home than the law protects, your home could still be “forcefully sold,” however, you would get the proceeds from the protected amount.

Homesteading a property is easy and cheap (usually the cost to record a document at your county recorders office). Check out your local laws and county recorder or assessor’s office and see if a homestead is right for you. It is the best, most inexpensive way to protect you home.