As of January 2016, the average apartment rent within 10 miles of Nashville, TN is $1246.
THAT IS NEARLY 15,000 DOLLARS IN ONE YEAR ALONE.
$15,000 you won’t, and can’t ever, get back.
If you plan to stay in Nashville for the next three to five years, it is smart to invest in one of the homes in Nashville.
You can make the same monthly payments, sometimes even less, towards a mortgage payment. Instead of paying your landlord’s mortgage with your rent money, you can pay your own.
Buying a home means building equity. And, we can’t recommend it highly enough. However, we often find that renters are hesitant to start the conversation around transitioning from renting to owning a home.
We hope this blog will answer some of the questions you might have about home ownership and even quell some of the hesitations you have towards owning your home.
Where does a mortgage payment go?
The payments go towards:
- Principal: Building Equity
- Interest: The bank’s cost of doing business
What do you need to find out what you’re approved for?
Five minutes and recent W-2s.
You can call a lender today and set up a time to find out what you’re pre-approved for. It’s a quick conversation. All you need are your W-2s from the past few years, or other proof of income, and knowledge of your debt. The lender will pull your credit score for you. They can quickly determine what you are pre-qualified for.
But, will banks try to trick me to get more of my money?
No. Banks want you to keep making your payments. Because, naturally, the longer you make payments, the more money they make. They make sure that you are not out of budget when they preapprove you.
Why is now the right time?
Interest rates and housing prices are only going up. They definitely aren’t going to go down. This is true nationally and in Nashville, Tennessee. Now that the economy is bouncing back, the banks are going to make it more difficult for people to get a house. If you buy a home or apartment in the Nashville area now, you’ll save more money than you will if you wait until later in the year.
The market isn’t going to burst. There aren’t a lot of houses on the market. Around 100 people are moving to Nashville per day. These people need homes in Middle Tennessee. To accommodate all of them, more homes in Nashville/apartments in Nashville have to available. This supports the market.
Now is the time!
I’m not sure my lifestyle is right for owning a home.
We hear this a lot.
Some people we know want to wait until they are married. If you’re engaged, it’s actually smart to buy a home that you and your fiancé will live in eventually. Find one that you pre-approve for. Or, just put both names on the deed. You can even change the deed later – that process isn’t as time-consuming as you might think. Let one person live in the home until you’re married. You can take advantage of the low-interest rates, and avoid throwing money away on rent (more money for a cake or a honeymoon).
Others are concerned about upsetting current roommates. You can buy a home that you qualify for and have your current roommates live with you. You won’t have to leave them behind, and they’ll be able to help you pay off your mortgage payment.
What’s the big benefit of moving outside of finances?
In addition to the enormous financial benefits, there are many perks to owning your own home. No more landlords, rules, regulations or inconvenient pop ups. You can do what you want with your property and build it into a home.
If this article peeks your curiosity, take the time to have that five-minute talk with a lender today. Click here to talk with Pete Zaft, our lending guru who can help you begin the process. As always, if you’re looking for a realtor in Nashville, TN, you can contact any of our real estate experts at 615.807.0579. All of our real estate agents are experts in TN real estate, and they can assist you in buying your home, selling your home or simply starting the conversation around a real estate transaction. Begin the process to make one of the homes in Tennessee yours today!