An Albuquerque Business First article really caught our attention a couple of days ago, by referring to a recent Zillow study that compared median home price to median rent.
The article went on to quote the average monthly rental in Albuquerque at $1,205 (compared to a national average of $1416), suggesting that if ABQ renters continually put that money toward a home, they could afford a $246,366 property, noting that the average home value in New Mexico, according to the study, currently stands at $187,500.
There then followed a brief examination of reasons why many renters continue to avoid a mortgage, citing upfront costs such as down payments as a deterrent, together with a reluctance to jump through all the hoops that need to be negotiated, such as applying for a home loan.
There was also an acknowledgement, however, that nearly half of current buyers are entering the market for the first time, perhaps suggesting that these barriers are being broken down to a quite considerable extent.
As we've reported so often, there's incredible enthusiasm to purchase a home at the moment and when you look at the quoted statistics in this article you can perhaps begin to see why there's a greater realization that, instead of adding value to your landlord's investment portfolio, there's a good chance that you might be able to invest in a home of your own instead.
And if down payments are a concern, there are low down payment options available that have quite possibly never been considered by many otherwise well qualified renters.
If we look at the statistics quoted from the Zillow report, it's clear that you could very well be paying thousands and thousands more in rent over the typical 15 or 30 year life of a home loan.
Never forget that, unlike a fixed rate mortgage, rentals will inevitably rise as landlords seek to cover rising costs and, naturally enough, maximize their return on investment.
So while not everyone can qualify for home finance, at least partially explaining the continual popularity of renting, surely these stats suggest that it's worth seeing if you can acquire a home loan through a pre-approval process. And remember that even if you've been turned down previously, circumstances, and indeed lending policies and loan products, change over time.
Why not contact us today. We can give you all the help you'll need to find the right home and connect you with top local mortgage professionals.