Are you renting and stuck in a lease agreement and wish you could buy a house now? Don’t abandon your dream and wait! Interest rates are going to rise in 2022 and you will pay more for the same house if you wait! So here are three things you can do to buy NOW!
Check the fine print
Find your lease or rental contract and look for a section that talks about early termination. See if there are any fees or requirements for terminating the lease early. If the contract doesn’t say, or you don’t have a copy of the contract, then call your property manager or landlord and ask them directly! Some leases call for a fee or require you to pay two or three months rent in order to get out of your contract early. Find out! There may not be a financial penalty.
See if there is a waiting list
Right now, housing is in demand, and not just homes to buy. If you have a property management company managing the rental you live in, they may have a waiting list of people who would jump at the chance to take over your lease! Call and ask. If you deal directly with the landlord ask your landlord if he knows anyone who would want to take over your lease. If he or she does not, then ask for permission to advertise and look for people interested in taking over your lease. Depending on your area, you could advertise for free on Craigslist or Facebook Marketplace, or other online sites.
You won’t have two house payments at the same time
When you buy a house, there is a slight delay on paying your first mortgage payment! Let’s say you get an offer accepted on a home in February. It will take 30 days to close escrow. So then if you close escrow in March you won’t have a mortgage payment on your new house until April, or sometimes even May depending on several factors! We always advise our clients to give their 30 day notice to their landlord once we have passed about the halfway mark in our escrow and we see that everything is looking good to close. Because you won’t have a house payment for another month that gives you plenty of time to stay living in your rental, close escrow on the house you’re buying, and then take your time moving.
If you are currently renting and would love to buy a house before your lease term is up, reach out to us! We can help you!
Written by Kim Jacobi of the Jacobi Team of Century 21 in Chico