Renters are typically those that can’t afford to buy a home or are saving money to purchase one. Middle-income couples and families rent while working towards buying a comfortable home despite their inadequate available funds. If you are in the business of renting homes and apartments, you know that it can earn you a good profit, especially if you know how to develop a good relationship with your renters. On-time payments and taking action on their complaints can build a good relationship between you and your renters.
Today’s home renters can become your buyers tomorrow. What are some tips you can give your renters looking to buy a home?
- Improve your credit score
Your credit score affects your life more than you ever know —, especially in home buying. Your credit score will determine if you are credible enough to get an FHA (Federal Housing Administration) loan as well as the interest rates that you will get for the house loan. Simply put, the higher your credit score, the more credible you appear to be in paying your loans, which means you’ll be more likely to get approved with an FHA loan with a lower interest rate.
- Save enough money
This is a very obvious statement. If you want to close a housing deal in a very competitive market, then you have to be able to afford it. To be able to do this, you should be knowledgeable in managing your finances and expenses. Let go of the wants and focus on your needs. Most FHA home mortgages require up to 20% of the total purchase price. This 20% is already big enough of an amount so you have to be creative on how to be able to save and come up with the amount.
- Be flexible
You may already be eyeing the dream home in your ideal community. However, if your finances won’t be able to afford its price, then you should be open-minded in being flexible with your options. There are things you will have to sacrifice like:
- a bigger home within your budget but a longer commute to work
- a smaller home with a shorter commute to work
- a home within your budget but further away from your ideal neighborhood
- Make use of the many first-time homebuyer programs
There are plenty of local and federal government programs that offer assistance to many first-time homebuyers such as down payment assistance with low-interest rates. There are companies that offer assistance that will allow you to provide a down payment as low as 3% – 3.5% of the home price, such as Fannie Mae and Freddie Mac.
- Get help from the experts
If you can’t find the right home during your home shopping, then contact Property Specialists for assistance. These real estate experts often know the properties that are put on sale even before they are listed. They also have a catalog of home properties based on price, location, and other preferences.