How do you feel about renting a house?
I dislike apartment living because I dont like having to walk all the way out to my car in any type of weather,I am a big safety freak also so something with a garage would be a plus so I have recently started thinking of renting a house.I do not believe my credit is good enough to own one yet.Anybody have experience with this?
- Anonymous1 decade agoFavorite Answer
I rented a whole house for $2000 a month on a 2 year lease.
The place was pretty much in good condition.
It was a 3 bedroom, 2 bathroom, semi-attached house with a backyard, frontyard and garage.
Hada Dishwasher, Washing machine an Dryer
My landlord was a West indian woman who had moved into a new house and was eventually planning on selling this property I was renting.
I had to pay electricity and Gas but the landlord payed for water.
The problems come after the lease ends though.
Most of the work that had been done in the house was SHODDY.
Cabinets were cheap. The tilework was SHODDY, even the windows and doors were poorly installed upon close inspection. It was so bad some of the doors couldn't even open properly.
I had constant problems with certain plumbing in toilets and the sinks.
Door locks and knobs were poorly installed and some of them quit working after a few months.
Some landlords, like mine, decided to refuse to pay for plumbing and maintenance after the first few problems I had and then got nasty claiming that I had damaged their property.
Because she didn't pay for the plumber to come when I complained the second time, the toilet ran up a $3000 water bill and she didn't want to pay it - claimed she was going to keep my $2000 deposit and wanted to evict me.
If you're gonna rent a house, I suggest you go through the house with a fine toothed comb and write down in detail every minor problem you can find.
Take LOTS of pictures before you move into the place and have the landlord sign EVERYTHING saying that they acknowledge things look as they are in the pics.
Some landlords can get really nasty with you and after your lease runs out they will get legal action against you to evict you whether or not you're ready to move on. And believe me, with America's housing market as screwed up with inflation as it is, that can be a frightening situation if you're not ready for it.
Otherwise, renting doesn't have to be a bad situation. Just make sure you keep yourself LEGALLY covered because ultimately, you have no rights in the home since the landlord still has the TITLE and the DEED.
I work for Country wide home loans as a Mortgage Broker.
The banks look at 4 main aspects when you apply for a loan.
#2 OVERALL CREDIT
#4 MORTGAGE HISTORY
As a first time home buyer, the most important things are your INCOME and your OVERALL CREDIT HISTORY.
Your credit history is based on how many times you've payed bills ontime or late and also how many different types of credit you've been granted such as car loans or credit cards.
Your credit score ranges from abot 400 - 800 when you're dealing with a home purchase.
If you are in the 400's or 500's, NOBODY WILL GIVE YOU
If you are in the 700's or 800's, you can get a house with almost $0 out of pocket.
700 fical score is A...higher than 750 is A+. 800 is A++
680 is a B-
580 - 650 is c- and below that is all D's and F's
The PRIME banks like Washington Mutual, HSBC and Chase look at credit scores above 680 for people who want to buy a house mostly because if you have good credit, you are considered less of a risk.
SUBPRIME BANKS (ones you've never even heard of) are usually willing to take Ficals around 580 and above simply because they need the money and are competing with the PRIME banks.
Also keep in mind that banks will take advantage of people with below B credit simply because they can. If your credit is in the C's and below, you might be able to get a mortgage but at a TERRIBLE interest rate.
PRIME banks tend to deal with B credit and better and offer better rates because they don't want to bother with people who have poor credit.
Your income is also very important.
Basically, your INCOME is based on your DEBT TO INCOME RATIO... (DTI).
If you make $50,000 a year, but have to spend more than 50% of your income on debts...you are considered a high risk. Most banks will not grant you a mortgage if you yave a DTI higher than 55%. Some will go as high as 70% though. if you have spectacular credit.
Equity basically means the APPRAISED VALUE OF THE HOUSE - the BALANCE ON THE MORTGAGE. Equity only applies in this sense if you allready own a house and need to refinance it.
The EQUITY of the house if your a 1st time buyer applies to the amount the house costs. If the house is $300,000 and you have no cash to put down on it, your LOAN TO VALUE is 100% because you need a loan for 100% of the cost.
We will forget Mortgage History, because if you don't own a house, you have no mortgage.
Most Banks will be certain that if they are giving you 100% of the cost, you have EXCELLENT INCOME and EXCELLENT CREDIT.
I am not sure what your credit history is, or what the amount of the house you want is, but if you have questions, you can email me at firstname.lastname@example.org.
It is better to work with a mortgage Broker than a bank because a broker has the ability to shop around with different banks. Some well known banks such as Washington Mutual and some banks you've never even heard of such as First Continental.
Brokers run your credit ONCE and use your fical scores to find a mortgage. If you go from bank to bank trying to get approved, you end up driving your credit score down because the banks want to make sure you are never applied for a mortgage based on your history.
If your credit is bad (below 600), don't even think of buying a house cause it will only hurt you in the long run. I suggest you buy a used car (or a new one) keep up all the payments on time and after a year your credit score will rise nicely. Then once your scores are high enough, you'll be able to get a good mortgage at a low interest rate.Source(s): EXPERIENCE
- Anonymous1 decade ago
If your credit is good enough to rent an apartment, should be the same with a house.
The obvious con of renting a house is that you're responsible for water bills, while it's usually free in an apartment.
- 1 decade ago
They have companies that work with all sorts of credit. I would try to buy a home before you get into the state of renting one.
Fill out the application for a pre-approval -
I am going for my loan originators license and I am buying a house with not so good credit at the moment. You can also look into this company:
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- bailadoLv 43 years ago
some human beings in basic terms dont like that long dedication. some human beings could in basic terms quite have that for the reason that of freedom not worrying related to the backyard, the assets proprietors coverage, the crap that is going alongside with it. Like putting a clean roof on, fixing the bathroom etc. And thats ok. some peoples credit wont enable them to purchase a clean homestead with out genuine of the line grade A credit checklist throughout on the present time and time. If it dont worry them, why does it worry you? somebody has to stay there. to each and each his/her very own.