Buying vs. Renting

Buying a House vs. Renting an Apartment

The advantages of homeownership are numerous. Many are intangible, but determining the financial advantages of ownership is relatively straightforward. For example, if you pay $800 per month in rent, you can expect that rent to increase around 5% per year. If you purchase a home for $120,000, you may pay $1000 per month – every month through the life of a traditional mortgage. By the sixth year in your apartment, with the 5% increases, your rent will have increased to over $1000. When you buy a house, your mortgage payment remains the same; and, you also enjoy the tax benefits of that come with homeownership.

Buying a House You Can Afford

All benefits considered, you’re still going to have to make a monthly mortgage payment, so you need to know what you can afford. Use our How Much Can I Afford? mortgage calculator to get an idea of how much you can afford. To learn more about calculating your buying power, try our How Much Income Do I Need to Qualify? mortgage calculator.

The Problem of Making a Down Payment

With SkyBlue Residential, you don’t need a down payment to buy a house. We offer 100% Loan to Value Mortgages. If you want to buy a $200,000 house, we can loan you $200,000.

Qualifying for a Mortgage with SkyBlue Residential

When we review your application for a home loan, we consider two key factors:

• Your ability to repay the loan, and
• Your willingness to repay the loan

We determine your ability to repay a loan by verifying your current employment and total income. We determine your willingness to repay a loan by examining how you will use the property you're planning to buy. For instance, we'll ask if you plan on living there or if you want to rent it. We can also determine your willingness to repay a loan by looking at your previous financial commitments and how you've handled them. We can gain this information by looking at your credit report or utility bills.

Despite our standard methods for determining ability and willingness to repay a loan, we want to emphasize that we approach every loan application on an individual basis. We'll look at all of your circumstances before making a decision, so your stronger points can outweigh your weaker ones. Remember, we want to assist as many buyers as possible, so we'll do our best to review all aspects of your application before making our decision.

Apply Before You Shop

You don't have to wait until you find the right home to apply for a loan. In fact, we recommend that you apply before you begin shopping. If you apply for a home loan before you start looking, you'll have a better idea of which areas you can afford, and as a pre-approved shopper, sellers will know you're serious about buying.

Fast, Hassle-free Lending Solutions

Good credit, bad credit or no credit we do our best to find first time home buyers an optimal mortgage solution. Apply today - and we’ll have answers for you within 24 hours. Or, give us a call at 1.866.733.7305. An expert loan consultant will be there to answer your questions in person from 9 a.m. to 7 p.m. (EST) Monday-Friday.