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. Look into mortgage rates and consider all of your options. Crunch the numbers and consider getting 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.
Ready for homeownership? Your next steps.
If you have considered all of your options and have decided to move forward with the home buying process, there are certain steps to take.
• Check your credit score. Better credit may mean mortgage opportunities with lower rates.
• Find the lender that’s right for you. Buying a home is stressful and you need to be comfortable with who is handling the financial aspect of such a large purchase.
• Pre-qualification. Once you decide on a lender, they will walk you through the process so you can search for your home knowing all your options.
• Consider how much home you can afford. Study your gross monthly income, housing expenses and any long-term debt. You may pre-qualify for more than what you are comfortable spending and that is okay.
• Take advantage of special loan programs. From first-time buyers to military benefits, there are a variety of programs available to help you achieve your dream of homeownership.
Are you ready to take the next step? Partner with the team at Busey for the resources to make your dream of homeownership a reality. Apply online busey.com, stop by one of our many convenient locations today or call 1.800.67Busey.