When your lease renewal shows up, it can feel like there are only two choices: sign for another year or start looking for a house.

But there’s a step worth taking before either one.

Figure out what buying would actually look like for you.

You may compare the two and decide renting still makes more sense. Or you may find that buying is more realistic than you thought. Ready to find out?

1. What Will Another Year of Renting Cost?

Let's start with where you are: What will your rent be when the lease renews? Are there additional monthly costs for parking, pets, utilities, or other fees? Do you expect to stay in the same part of Florida for at least another year?

Look at the total cost of renewing for the next 12 months. That gives you a useful starting point for comparing renting with buying.

2. What Monthly Home Payment Would Feel Comfortable?

The price doesn't tell the whole story. There are property taxes, homeowners insurance, mortgage insurance when applicable, and HOA or condo fees to factor in.

In Florida, homeowners insurance costs vary depending on the property, location, roof, coverage, and other factors. Property taxes can also change after a home is purchased, so the taxes shown on a listing may not necessarily reflect what a new owner will pay.

Instead of starting with “What's the most expensive house I can buy?” start with:

“What monthly payment would I actually be comfortable with?”

Then work backward.

3. How Much Cash Would You Actually Need to Buy?

A 20% down payment isn't required for every home loan. Loan programs have different upfront requirements depending on your eligibility and qualifications.

There are other costs to consider beyond the down payment, like closing costs and prepaid expenses. Depending on the transaction, seller contributions may also help with certain eligible costs.

4. What Does Your Credit Look Like Today?

Your credit can affect which home loan options are available and what the numbers look like, so it's worth knowing where you stand before your lease deadline is a few weeks away.

And if your score does need attention, you'll have time to work on the things that actually matter instead of guessing.

5. Where in Florida Do You Want to Buy?

Location affects more than the sales price: Property taxes, homeowners insurance, flood insurance considerations, HOA or condo fees, and available properties can vary from one Florida community to another.

That means a $400,000 home in one area won't necessarily have the same monthly cost as a $400,000 home somewhere else.

If you're flexible about where you live, comparing a few areas can give you a much better idea of what your budget can actually buy.

6. What Are You Waiting For?

If you're leaning toward renewing your lease, ask yourself one more question: What am I hoping will be different when this lease ends?

Maybe you want to pay off some debt, improve your credit, earn more, or have a better idea of where in Florida you want to settle. Or maybe you're simply not ready to own a home.

Once you know the reason, you can determine whether waiting actually helps you get there.

Before You Renew, Compare Both Options

Looking into buying a home in Florida doesn't mean you have to buy one. It's smart to consider the benefits and costs of renting and buying, especially when you have long-term financial goals.

You can always renew your lease. Just find out what your other choice looks like before you do.

If your lease is coming up, a Mortgage Loan Originator at The Mortgage Firm can help you put real numbers around buying so you can decide what makes sense for you.