How to Rent Before Buying a House
Buying a house is a big decision that should not be made lightly. Renting a house before you buy a house can teach you a few things, so that you will be ready to buy a house later on. Renting will give you an idea of what type of house you enjoy living in as well as what location you prefer. You will be able to use the time you rent to save money for your big purchase.
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Instructions
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Determine how long you plan on renting before you are going to begin looking at houses to purchase. This will give you an idea of what type of lease you are willing to sign. Some leases are set up for six months, and others for two years.
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Make a budget. You want to rent an apartment or house that has a rent which is low enough that you can save money each month toward your future housing purchase. If you rent a house for $1,200, but have no money left over at the end of the month, you will not be able to save any money to purchase a home in two years. If, however, you rent a house for $775 a month, you will have over $10,000 saved toward your home purchase after two years time.
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Choose a location. You will need to choose a location based on what is most important to you. You may want to look closer to your job location so that you do not have a long commute. You may want to move right in the heart of town. You could also choose a location based on where you want to eventually purchase a home. This would be a great test run to see if you like the area.
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Begin searching for a property to rent. You can use a real estate agency that manages rental properties, or you can call rentals listed in your local newspaper. If you like the house or apartment you see, ask for an application. The landlord may have several applicants. They will most likely check your references and do a background check on you.
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Do your research when you are ready to purchase a home. You also want to let your landlord know that you are looking for a home to buy. Some landlords require 30 days written notice of your intent to leave. Of course, if you have a lease, you will need to fulfill it before you move. You can move, but you will still be responsible for the rent until the lease is up.
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Tips & Warnings
Make sure you work on building up your credit during the time you are renting. This will help you get approved for a mortgage.
It is not worth purchasing a home if you do not plan on staying in an area longer than five years. If you think your job may cause you to relocate, you should just keep renting.
