Should I buy or rent?
If you are currently renting your home and are thinking about buying a home, here you will find information about VA loans and a few pros and cons about buying vs renting. As you probably already know, buying a home is one of the biggest decisions that anyone can make during their lifetime. Let’s check some of your options.
Costs of Buying a Home with a VA Loan
These are some of the costs associated with buying a home and getting a VA Loan. Some of these are one-time costs, and others are recurring.
One-time costs include:
- Closing costs
- Appraisal and compliance inspections
- Recording fee
- Title examination and Title insurance
- VA funding fee (sometimes this is waived if you are disabled)
Recurring costs include:
- Mortgage payments
- Homeowners insurance
- Property taxes
When you own your own home, you will also be responsible for any repairs or renovations that may be necessary down the line, as well as all utilities each month.
Costs of Renting a Home
Renting a home or apartment comes with both upfront and recurring costs of its own.
Upfront, one-time costs of renting include:
- Security deposits
- First month’s rent
- Additional nonrefundable deposits and/or pet deposits
Recurring costs of renting include:
- Renter’s insurance
- Utilities, depending on if any are included in rent payment
- Laundry if there’s no washer/dryer in the residence
The Ultimate Advantages of Buying a Home
The most important benefit to buying and owning your own home is building equity. As you make payments on your VA Loan, every penny that goes toward the principal is equity gained. In addition to this equity, your home can also go up in value over time as the market improves and you make intelligent renovations or improvements. When you rent, you do not gain any equity whatsoever, as you will never own the property.
There are also tax benefits to owning your own home, and you have the potential to rent it out for additional income in the future. Please consult your tax professional about your specific situation and the tax saving benefits of home ownership.
Advantages of Renting a Home
There are some advantages to renting as well. One of the biggest advantages is that renters are not responsible for maintenance or repair work. Two others are that relocating is easier and there is no exposure to market house price fluctuations. However, there is absolutely no equity built in renting, so although risk may be lowered, the potential reward is eliminated.
At Booyah Mortgage, we help our veterans and borrowers through the process of buying or refinancing their homes, which is one of the biggest financial decisions anyone can make in life. We are here to serve those of you who have served our great nation.
“A “Veteran”- whether active duty, discharged, retired, or reserve- is someone who, at one point in his life, wrote a blank check made payable to “The United States of America,” for an amount of, “up to, and including his life.” That is honor. And there are way too many people in this country today, who no longer understand that fact. Our mission is to ensure that we give back to those who wrote that check.” – Shane Johnson
Booyah Mortgage servicing Veterans across Lake Mary, Orlando, Jacksonville, Pensacola & the Gulf Coast
Questions about VA home loans and the right mortgage for you and your family?
Give us a call (844) 726-6924
Booyah VA Mortgage Florida service areas include: Brevard, Clear Water, Duval, Jacksonville, Fort Walton Beach, Key West, Lake Mary, Lynn Haven, Mary Esther, Miami, Miami Beach, Milton, Orlando, Panama City, Panama City Beach, Pensacola, Starke, Tallahassee, Tampa, Valparaiso, West Palm Beach, and surrounding areas.
Booyah VA Mortgage South Carolina service areas include: Beaufort, Columbia, Goose Creek, North Charleston, Port Royal, Sumter, and surrounding areas.