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Crunch The Cost: Is there a cost difference in renting vs buying?

A BCS realtor spoke with KAGS and explained how shifting rental rates are also changing the demands of those who want to buy or rent a home.
Credit: KAGS

BRYAN, Texas — In recent months, the housing market has been unpredictable.

Last month, home sales began seeing the sharpest decline, dropping by 1.7%

On top of the recent trend of rental rates declining, a BCS realtor explained how the demand has shifted when it comes to people who want a home or to rent. From home owners, to those who look for apartments, renting or buying has always been a topic of discussion when it comes to what's most cost-effective.

"As long as we stay within their price range, they're okay with buying a house," said HoM Realty realtor, Kadijah McClenton.

So we broke it down and found that there are many similarities in requirements for both living styles.

"It really isn't a big difference," said McClenton. "They require a steady income, they require basically the minimum requirements for you to get pre-qualified for a home."

For the buyer, that means having a decent credit score to start. For some apartments, proof of employment, and background checks may also be required. Additionally, some landlords may require you to make two or three times the rental amount.

In both cases, McClenton shared that landlords or banks can refuse to accept your application based upon the aforementioned factors.

"Your background isn't a big determining factor if you can pre-qualify for a home loan," she said. "They just wanna see if you have the income." 

Furthermore, in apartments you may be subject to your rent changing at any turn, with no option to refinance.

"The thing about home loan is, if you can find a home that you can afford, if you can get in and afford it now, down the line you can get in and lower that price," McClenton said.

She said what's happening to the market is fairly normal as things cool down. In terms of cost effectiveness, it's not a question of renting vs buying, but based on what you can afford.

As the market slowly levels out, McClenton advises all to choose renting or buying if it works for them but to also keep your options open and in mind.

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