Renting a home

At Tholco Real Estate Group we aim to make sure are renters and buyers are placed properly based on their financial needs and desires. Words you will hear few real estate agents mutter: Not everybody should own a home! Some people aren't ready for home ownership and for these clients we provide quality homes for rent. 

Are you not quite ready to buy and would like to rent one of our quality homes? Here are some ways to tell.
 
Bad Credit
Do you have “less than perfect credit”? If you’re FICO score is below 620, you're probably not going to receive a good interest rate for a loan. In fact, that kind of score could dump you into the hands of a predatory lender.
 
High Debt Ratios
Lenders consider two ratios: front-end and back-end. The front-end is your mortgage payment, plus taxes and insurance divided by your monthly salary. The back-end adds your monthly debt payments to your PITI (principal, interest, taxes and insurance) payment before dividing that total figure by your salary. A 50% debt ratio is a high ratio. A high debt ratio means you may not qualify for the loan. If you should find a lender that is willing to approve you for such a loan then you may not be able to afford the payments long term..
 
Job Instability or Relocation
How secure is your job? Consider this; a buyer purchased a home in a nice neighborhood in Anytown, USA. The mortgage payments are $3,500 a month, which is alot for a 25-year-old just starting out with their first home. However, that payment was affordable while this buyer was earning an annual $120,000 salary. But when the buyer lost their job, they also lost the home to foreclosure.
 
•     Is Your Job in Jeopardy?
Is your company laying off? Could you be fired and, if so, how hard would it be to get another job right away? Unemployment compensation is rarely enough to cover mortgage payments.
 
•     Relocation.
Are you likely to be transferred to another city within the next two to three years? If you had to sell due to a job transfer, your property would need to appreciate at least 10% to cover the cost of selling; otherwise, you would lose money on the sale. When you buy a home, you should plan to stay put for a while.
 
Maintenance Issues
All homes require upkeep and maintenance. Not everybody has the where-with-all, much less the desire, to tackle home repair projects. In addition, many first-time home buyers can not afford to hire a professional to fix things that break. Experts suggest you set aside 5% of the purchase price to cover maintenance and repairs when you buy a home.
 
When Renting Costs Considerably Less
If your mortgage payment would be triple the amount (or more) you would pay for rent, it might not make financial sense for you to buy. For example, if it would cost you $2,000 a month to rent what would cost you $6,000 per month to own, does it make sense to pay $48,000 a year more to own a home?
 
If you are in a 30% tax bracket, you might not come close to recouping the difference you paid. Say your deductible expenses are $5,000 a month; 30% of that is only $1,500, which would be your true tax savings per month. Would you spend $6,000 to save $1,500? For more information, please consult a tax accountant or CPA.