Owning a home is considered an essential part of achieving the American Dream, and depending on your financial situation, it may be something to consider. Studies show it is 38 percent cheaper to own a home versus renting a home.
5 Factors to Consider Before Purchasing a Home
If your lease is about to expire or you are expanding your family and you think now might be the right time to buy, consider these five factors:
1) Time. How long do you plan to stay? Experts recommend at least three years if you plan to purchase a home. The longer you stay, the greater the benefit of buying over renting.
2) Finances. Consider how much you can afford and how much you have saved. Busey recommends saving at least 20 percent of the home’s purchase price. If you don’t have the cash up-front consider establishing a budget, creating a special savings account and eliminating unnecessary expenses.
3) Mortgage rates. Review rates and consider your options. Crunch the numbers and get prequalified so you can shop with a price in mind.
4) Risk. Are you financially secure to weather a drop in home prices?
5) Your heart. If you are longing to make your house a home, now might be the right time to dive into homeownership.
Next Steps for Homeownership
If you have considered all options and have decided to move forward with the home buying process, here's what's next:
• Check your credit score. Better credit may mean mortgage opportunities with lower rates. Request your free credit report consultation from Busey. Our professionals will analyze your credit report and help you understand how creditors view your credit history.
• Find the lender that’s right for you. We know just how stressful it can be to purchase a home. Busey provides you with a personal experience—making the process timely and stress free. We’re proud to be consistently named a Top Lender by LendingTree.
• Pre-qualification. Your lender will walk you through the process. With free pre-qualifications from Busey, you can search for your home knowing all your options.
• Consider how much home you can afford. Consider your gross monthly income, housing expenses and any long-term debt. To do the math, check out our ‘How Much Home Can I Afford?’ calculator.
• Take advantage of special loan programs. From first-time buyers to military benefits, Busey participates in nearly 30 programs to help you achieve your dream of homeownership.
Are you ready to take the next step? Partner with the experts at Busey Home Mortgage for the resources to make your dream of homeownership a reality. Apply online buseymortgage.com, stop by one of our many convenient locations today or call 1.800.67 | Busey.