6 Things Renters Should Know in Summit County: When They Go From Renting to Owning
1) Your mortgage can be less than your rent. That is not always the case but with our extreme rentals rates it definitely can be the case for many people. When you own a home you will be responsible for paying for your association dues if there are any. This can affect the overall amount you contribute towards housing each month.
2) Your mortgage payments can fluctuate. Your mortgage payment is typically made up of principal, interest, taxes and insurance. The biggest reason mortgage payments fluctuate is because taxes and insurance may change year to year. Our taxes are mainly based on the value of your home. The county and towns re-asses these values every two years so your payments may fluctuate then.
3) When you are buying a home, your lender probably can not count income from roommates. Most lenders can only count income from a lease when you have a signed lease in hand. You may not be able to get a lease signed until you own the home. It’s a smart idea to make sure that you can handle the full mortgage payments on your own so you don’t find yourself in a tough situation.
4) You can buy a home with a friend or family member. Two friends can go in on a home together to make the purchase more affordable. You would buy the home as “tenants in common.” You would want to make sure you have a plan in writing for what will happen when one person wants to sell or move. You can also have a family member co-sign for you.
5) Plan to be at your new home for at least 2 years. When renting, you may move to different areas more frequently. Once you buy a home, you will want to occupy it as your primary residence for at least 2 years otherwise there can be greater tax implications.
6) You may need to abide by new rules. When you own a home you need to ensure that you are complying with the rules and regulations of the neighborhood or complex. On the upside, most owners are allowed to have pets where as it might have been a struggle to find a rental where you could have a pet.