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Buying Versus Renting Home For First Time Home Buyers

Gustan Cho Associates
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Buying Versus Renting Home For First Time Home Buyers

This BLOG On Buying Versus Renting Home For First Time Home Buyers Was Written By Alexander Thomas Carlucci of Gustan Cho Associates

Buying Versus Renting Home
Gustan Cho Associates

One thing I have come to realize looking back, a single young man in 2006 was the beauty of saying it’s all mine.

  • So one morning I asked myself why to pay someone else’s mortgage when I can pay my own mortgage and considered buying versus rent home
  • Most people do not realize it’s the same exert process, paying for someone’s equity or building one for yourself
  • If renters can afford to pay rent, they can own a home
  • Not just owning the home, it saves a renter a lot of money on the taxes they have been giving the Landlord for years
  • Don’t let anyone tell you cannot do it, I beg to disagree
  • Call or text me, I will help get first time home buyers get prepared for home ownership
  • Does a home buyer need a lot of money to buy a home? No
  • FHA only requires a 3.5% down payment
  • In many cases renters need to come up with security deposit, first month’s rent and last month’s rent to move into a rental
  • This can be equivalent to a down payment on a home purchase

I Have Considered Buying Versus Renting But I Have Bad Credit

I Have Considered Buying Versus Renting But I Have Bad Credit
Gustan Cho Associates

Most people will use the credit excuse as a reason why they cannot buy.

  • Having bad credit is like having a bad hangover
  • Even if you do nothing to improve credit, credit scores will naturally go up as the derogatory credit items ages and as it ages, the bad derogatory credit items will have little or no impact on credit scores
  • After 7 years from the date of last activity, derogatory credit items will fall off from consumer credit report
  • Bankruptcies will remain on credit report for 10 years
  • However, there are simple tricks of expediting boosting consumer credit scores
  • Credit scores will instantly be boosted by paying down debt and for those with no trade lines, open up some
  • Paying down maxed out credit cards can easily boost credit scores by 50 plus FICO points
  • If you have no active credit tradelines, just opening up one secured credit card will easily boost credit scores by 20 or more points
  • However, don’t get carried away and incur more debt before you buy the home, as that is some of the reasons people end up in foreclosure

No Money For Down Payment And Closing Costs

No Money For Down Payment And Closing Costs
Gustan Cho Associates

FHA financing which is the most popular out there amongst first time buyers and home buyers with prior bad credit and higher debt to income ratios require just a 3.5% down payment.

  • Start saving on time, skip some night outs, some shopping trip and put that money away
  • With a great  experienced real estate agent by your side, you can always get the seller to pay the closing cost through a sellers concession
  • FHA allows gift funds to be used for the down payment on a home purchase
  • Mom, dad, grandma, grandpa can gift you 100% of the down payment
  • If by chance you live in a rural community, or one you will love to move to, (not country; county lol) find out from an agent what constitutes a rural community and it will surprise you
  • USDA Loans are zero $$$$ down, same goes for VA
  • Don’t let anything stop you, and don’t be your own enemy

A Little About The Author Of Buying Versus Renting Home 

A Little About The Author Of Buying Versus Renting Home
Gustan Cho Associates

Alexander Thomas Carlucci is the author of this blog on Buying Versus Renting Home . Alex is a veteran licensed loan officer in the state of Illinois as well as multiple other states. Alex Carlucci believes a knowledgeable loan officer in all aspects of real estate is a must to best represent home buyers and home sellers. Since financing plays a major role in representing home buyers and home sellers 25 years ago, Alex Carlucci decided to go to mortgage loan officer school to get his mortgage loan origination certification so he can sit for the federal mortgage NMLS examination.  Despite his busy schedule, Alex Carlucci was determined to study and pass the difficult federal NMLS mortgage exam and passed it on his first try. Alexander Carlucci was hired by Loan Cabin and Gustan Cho Associates, a full-service mortgage banker known for its no overlays. Alex Carlucci is not just a mortgage loan originator but also a team leader and training director due to his positive attitude and his leadership abilities. Alex Carlucci is a natural leader, not just in real estate and mortgages, but in general.  Colleagues and business associates of Alex Carlucci naturally gravitate towards him  All of Alex Carlucci’s clients become his lifelong friend. Alex Carlucci quickly rose up the ranks to become a Senior Vice President of Mortgage Banking at Loan Cabin Inc.

  1. Homebuyer15 says

    On my way to being a home owner, thanks to real estate savy Bennie! She offers priceless advice and literally holds your hand throughout the process. She demystifies the home buying experience and makes it seem super easy. Highly recommended!

    1. Gustan Cho says

      Bennie Chukwurah is not just a top producing Texas licensed real estate agent but a true friend, advisor, and Angel to all of her contacts. Bennie Chukwurah is someone who will go beyond her call of duty to help anyone in needs. Bennie Chukwurah is always studying and researching in areas of real estate and mortgage lending because she feels that knowledge is king and since all of her clients depend on her, she needs to be an expert in all areas of real estate which includes mortgage lending. Bennie Chukwurah has passed the rigorous NMLS federal examination and is now a federally licensed mortgage loan officer and team leader with The Money Store and Gustan Cho Associates on the non-conforming and commercial lending side. Bennie Chukwurah is respected by every real estate, mortgage, legal, title, and insurance professional nationwide. The Money Store is licensed in most of the 50 states and is known for not having any mortgage lending overlays.

  2. Hannibal Young says

    Hello, Mr Cho, this is Katrina Smith’ s husband, we are working aggressively with Kay and Su who have been extremely helpful and responsive throughout the process. Our loan is being reviewed by the underwriter who is concerned with our collections. keep your fingers cross!

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