First remember that youre paying someone elses mortgage and I can almost guarantee they are also making a dollar or two on each payment also...This being said, you can see you could easily afford a mortgage...One key to making sure your purchase of a new home is to make sure you can document how you paid your rent...Keep all receipts and try to avoid paying in cash...Most lenders will want to see a 12 month rental history, the better paid, the better rate you will qualify for, thats it...

For those renting a home they would like to purchase, there is a legal document called a Land Installment Contract which can be used to document your intent to purchase the home...The benefit of going thru this process is that many lenders will consider and price your loan as a refinance instead of a purchase if youve been there for more than a year on a recorded land contract...Some will actually honor unrecorded land contracts...Being considered a refinance could save you 1000s of dollars you may have needed to come up with for closing costs on a purchase where on a refinance, there is more opportunity to roll those costs into the loan...

For renters, the decision to stop renting and buy a home can be stressful. This is especially true if the monthly payment is higher than their current rent payment.
However, consider this way of looking at it.
If you buy a home with a 30 year fixed rate mortgage, your house payment will stay the same for 30 years, other than slight increases in property taxes and insurance.
If you continue to rent, your rent will most likely increase every year for the next 30 years. After just a few years, your new rent will be higher than that house payment if you had bought.
Further, if you buy, at the end of 30 years you will own a home that has gone up in value between 3% and 9% per year for 30 years.
Not only do you spend less over the course of 30 years when you buy, you also end up with a very valuable asset.

 

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