Will You Own Again Or Is Renting Your Future

Sometimes life takes unexpected turns. Some of the time these turns are wonderful and sometimes they are painful but the thing to remember is that you can always rebuild and move on after a painful turn in your life. If you’ve experienced such a turn in regards to your home and you’ve lost it, you may be wondering what your next step should be. When it comes to where you will live, will you own again or rent?

This may sound like an easy question to answer, but trying to determine will you own again or rent has to be carefully considered. There are many variables that will make up your decision.

For most people they will probably do both. Most people still want to own their own home. This is probably still the case even if they have had some bad luck and have lost a home to foreclosure.

But the road back to home ownership will take some time, so in the meantime renting is probably the best option.

Unless you have come into a windfall you will need to get a mortgage if you want to buy another home and in most cases so you will need to take some time to work on improving your credit score and saving a down payment.

After the mortgage meltdown that has affected so many people, banks are more strict than ever in terms of what they want to see for a minimum credit rating and a down payment.

During the height of the housing boom you could buy a home with a marginal credit score and no down payment, I seriously doubt that will happen again any time in the near future… if at all.

So, you will need to take the time necessary to prepare yourself for home ownership again. The positive side to all this is that with so many homes in foreclosure and home sales at an all time low, you may be able to find a home where you can rent to own.

Sometimes you will find a home owner that doesn’t need all the money right away. They can hold out and get the monthly payment over a period of several years.

These people will still probably want a credit report and may shy away if your credit is bad, but they may also be more open to listening to your circumstances.

For example, they may cut you some slack if you were one of the people who bought your home with a minimal down payment and you didn’t have any savings to fall back on then lost your job. They may be open to this arrangement especially if you can prove that now you have savings to fall back on in the event of a job loss and you come to the table with a big down payment.

In other words, a private party will still be cautious but they have more flexibility in what they will allow than a bank does. Banks have their rules and guidelines and very little flexibility to stop and consider your exact circumstances. If you don’t fit into their pigeon hole you don’t get a loan.

So, if you have had to deal with the financial set back of losing your home the question of will you own again or rent is one that you must carefully consider. And for many people, doing both will be the best solution.