In an effort to save money, many families are contemplating whether renting may be a less expensive option that purchasing a new home. According to CNN Money, the latter may now actually be a more affordable option.
Researchers Ken Johnson of Florida International University and Eli Beracha of East Carolina University have found that the cost of renting is expected to rise as a result of more individuals who have lost their homes to foreclosure turning to renting instead, the news source reports.
Combining higher rental costs with a major drop off in home values during the past few years and market conditions may favor buyers. The two researchers found that families who are willing to live in a home for at least eight years may save money by purchasing a house rather than renting an apartment, according to the report.
For many current renters, this means that if they are able to get their finances in order and qualify for a mortgage they may save large sums of money by investing in a home. To improve their chances of getting their mortgage approved they may need to take steps to boost their credit scores.
One way to raise their three-digit numbers is by identifying any unfair or inaccurate items on their credit report. Any marks that appear on a person's record, but which cannot be verified or substantiated by the credit company that reported it, is open for investigation and can be disputed.