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Buying a Home Rather Than Renting Still Makes Sense and Here's Why

With rents continuing to rise and interest rates not going down, you may wonder if you should still rent or take the plunge and buy. Here's what you need to know.
May 03, 2023

Deciding whether to rent or buy a home this year? Rental affordability has been challenging for years, and it isn't changing any time soon. That's why many are considering the advantages of purchasing property despite the higher rates.

According to data recently released by Realtor.com, while the rental market is experiencing slower-paced growth, as of March 2023, rent is still over 25% higher than in March 2019! With rents much higher now than in pre-pandemic years, owning your own home can provide a more affordable and stable option.

A Mortgage Offers Payment Stability

Homeowners with a fixed-rate mortgage can lock in a monthly payment for the duration of their loan, usually 30 years, unlike renters, who are subjected to fluctuating rental rates.

Pay Less for More Space

If you need a larger living space, like two or more bedrooms, then you should definitely look into buying a home. When comparing the cost of rent of a two-bedroom to a mortgage payment for a two-bedroom, the homeowner comes out on top. According to Realtor.com, the median monthly mortgage payment for a two-bedroom property is $74 less than renting.

Build Equity for Your Future

Furthermore, owning a home allows you to start building equity, which grows your net worth as home values typically rise over time. As you pay off your mortgage, the equity builds, which can be utilized to fuel a move to an even larger space down the line. Building your own equity is why many bought their homes in the past year.

What Would Your Mortgage Payments Actually Be? Find out!

There's no better time than the present to pursue your dream of buying your first home. If you're looking to accommodate your household in a bigger space, have more breathing room to spread your belongings, or dedicate space to your hobbies, consider homeownership and work with a trusted mortgage professional to explore your home financing options and home-buying assistance programs.

With rents rising, owning a home could be a more sensible option! Contact us today for an obligation-free consultation, and use the calculator on our website to get an idea of your future mortgage payment.

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.

👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.