I’m here with Jesse Davis, one of our property specialists, to discuss the transition from renting a home to owning a home. If you are currently renting a property and thinking about making that shift to owning a home, there are a few things you need to consider.
When you are looking to get out of your lease and take advantage of the market, it’s best to start early. Talk to a lender and get that pre-approval process started. You want to find out what your budget is going to be so you know what you can afford and what you will be comfortable spending. The key in any transaction is knowing your buying power.
If your lease is up in 30 days, you can buy a property, but that is going to be a very challenging transaction. Like we said, you should start the home buying process sooner rather than later. Get pre-approved early so that if you do have problems with your credit, you can get them fixed. You may also need more time to save for a down payment.
Remember, a lot of things can come up during the buying process. For example, inventory is low right now in Denver, so finding that perfect place may take longer than you expect. Starting everything ahead of time will never hurt your transaction – it can only help.
You may be wondering, “When should I talk to my landlord about this decision? Some landlords may let you break your lease a little early, while others may not be so generous. With rental rates going up in the Denver market, it is okay to move out, especially if you’ve been in that area for a long time.
We recommend talking with your landlord and checking your lease and lease terms. Is there a break lease fee? Do you have to give notice within a certain timeframe? An open conversation with your landlord will really help the transaction.
Finally, it’s never too early to talk to an agent about what the home buying process looks like. Your agent will help you figure out up front costs, like your down payment, inspection, and appraisal costs. You should also discuss what your timeframe looks like. If you are making this decision with someone else, it’s important to have this discussion early on so everyone involved in the transaction is on the same page.
If you have any questions, give us a call or send us an email. We would be happy to help you!