As families carefully review and manage their household budgets, a big question that is asked in households across the United States is “Do we buy, or do we rent?” Your rental history report can be a useful tool in making this important decision.
There are a lot of factors that need to be considered for each family to come up with an answer that fits the family’s needs. Factors like:
* Overall cost – With mortgage interest rates still quite low in 2013, financial experts say buying is a better deal than renting in the long run.
* Short-term finances – Some families can’t afford a down payment on a home, and therefore might be better off looking at rental units.
* Anticipated time spent in one location – Families that frequently move probably don’t want to deal with the hassle of constantly putting a home on the market. And with the recent down housing market, it might cost more money in the long run.
* Ability to get a mortgage – There are many factors mortgage lenders will review prior to approving the loan, one of which is a credit score. Lenders will charge a higher interest rate for lower credit scores, which might make the loan unaffordable.
* Passing the background check – Landlords will often purchase a rental history report for applicants to help determine if the applicants have a good history of paying bills and rent on time – or have an eviction record from a previous apartment. Families that have any negative information appearing on their rental history report might not be approved for renting an apartment or home, and because of this, might be better off purchasing a home.