Perks of Home Ownership

You Can Make It Your Own
When you're a renter, each monthly rent payment helps build your landlord's net worth instead of your own. Plus, you’re often penalized or restricted from simple things like having pets and painting walls. When you own a home, you have the freedom to make it your own. Plus, upgrades you do to your own home can actually help increase its value.

You Can Actually Save and Earn Money
Owning a home isn’t without risks and challenges, but it may also packed with benefits from tax savings, increasing your equity, and no unexpected price increases at the end of your lease.

Build Your Credit
Buying a home can really give your credit score a boost, and as you begin to make on-time mortgage payments, it can continue to help keep your credit strong.

Getting Started
If you’re ready to get started on a mortgage application, let us know. We work exclusively with Primary Partners to ensure that you have the support you need to make that dream of home ownership a reality.

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More Resources
Rent Vs. Buy Calculator
Getting a Mortgage
5 Proven Tips for Affording a Mortgage

How Much House Can You Afford?

Before jumping on Zillow and finding your dream house, one of the most crucial steps in purchasing a home is understanding what you can afford.

The Income Rule
If you’re unsure on what to spend, consider the general guideline that a homes value should be 3 to 5 times your total annual household income. There are factors such as existing debt that will impact where you fall.

Down Payment Options
You may be able to take advantage of low down payment or even one of the down payment assistance programs or grants.  However, if you put less than 20% of the home value as a down payment, you will have mortgage insurance (private mortgage insurance or PMI or FHA MIP) and will need to build in that extra cost to your monthly mortgage payment.

Ask a Pro
To get even more help determining your price range, our mortgage team at Primary Partners Financial is always here for you.

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More Resources
Calculate How Much You Can Afford

10 Important Things to Know

Purchasing a home is likely one of the largest financial commitments you will make in your life. The process can be overwhelming and exciting all at once. It’s important to keep these things in mind as you go through the process.

1. Know the Value
Don’t allow emotions to steer your home purchase decision. Often first-time home buyers will get caught in a bidding war and extend beyond what they budgeted for. Know what you can afford, and stick to it.

2. Have Your Own Agent
You may be able to save if you use the same agent as the seller, but you really want someone who is working for you exclusively and has your best interest in mind.

3. Try to Avoid Buying Points
Buying points can help reduce your mortgage rate and it can be very appealing, but if you do not plan on being at that property for the long-term, you likely won’t reap the benefit you paid for.

4. Watch Out for Adjustable Rate Mortgages (ARMs)
Some lenders may offer you a very low initial interest rate that sounds too good to be true. Often it is and if that rate increases it may cause you to no longer be able to afford the new monthly payment. See if an ARM is right for you.

5. Pay Closing Costs Separately if You Can
A buyer may feel they are getting some immediate relief by rolling things like closing costs into their loan, but it is much more expensive in the long run.

6. Ask About Service Contracts
Things like a/c and your hot water heater will break down over time. Before you shell out to pay for repairs, check to see if they are covered in a service agreement in your loan documentation.

7. Save Some Funds for Future Repairs
Even a very thorough home inspection won’t uncover every potential issue. Yes, have your home inspected, but also make sure you are saving for repair costs that may arise.

8. Don't Forget About the HOA Fee and Mello-Roos
The house you choose may not have an HOA, but it is worth knowing in advance. An HOA can come with some bonuses, but also some limitations and an additional cost you will need to account for in your budget.

Always check if your area has a special tax known as Mello-Roos, which are paid by homeowners in the given area. Your agent should be able to find this out for you.

9. Check on Homeowners Insurance Before You Buy
Being able to afford a home and home insurance is not enough. Do research before you purchase a home to make sure you can get coverage. Sometimes the risk of damage to the house by natural causes can result in insurance companies not insuring your home.

10. Plan For Potential Increases in Insurance and Property Taxes.
Having a fixed rate mortgage helps give some predictability in your monthly expenses, but events like natural disasters can cause increases in insurance, and Property Taxes vary year to year.

Ready to Get Started?
If you’re ready to get started on a mortgage application, let us know. We work exclusively with Primary Partners to ensure that you have the support you need to make that dream of home ownership a reality.

Get In Touch

4 Steps to Getting Mortgage Ready 

1. Save. Save. And Save Some More
You’ve likely already started saving for your future home (kudos). But building a budget and savings plan are essential to make sure you stay on track.

2. Know Your Credit Report and Pay Down Existing Debt
Be sure there are no surprises and take care of any outstanding disputes, charge-offs. Paying down balances on existing loans (credit cards for example) will help lower your income to debt ratio which impacts your credit score.

Find Your Credit Report  |  More About Credit Scores

3. Prepare for Unexpected Costs
When making an offer for a home, many first-time home buyers don’t account for the upfront costs (things like application, home inspection, credit report or appraisal fees) when they estimate what their purchase costs will be. Often, these fees are non-refundable, so make sure you understand these fees before signing a contract.

4. Gather Income and other Financial Documentation
Before you meet with a lender, you’ll want to gather at least your most recent 30 days of pay stubs, bank statements, and the prior two years of tax returns. Some lenders may require additional documentation. Check with your lender and make a checklist of things to prepare.

No matter what phase of home buying you're in–we can help!

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Your Home Buying Team

The home buying process can be daunting, make sure you build a team to make the process go as smooth as possible.

Agent
This person should know the market you are looking at. They will know what makes a good offer and can provide guidance. Your agent works on your behalf and will help negotiate and review documentation pertaining to the home purchase.

Inspector
Most offers are contingent on passing an inspection. This should be a third-party expert who will examine the property to try to determine any underlying problems or concerns with the house.

Lender
Having a lender who can work alongside you to make the process as smooth as possible is a game changer. A lender not only works with you to find your lowest rate but can provide guidance on different options for first time home buyers.

If you’re ready to get started on a mortgage application, let us know. We work exclusively with Primary Partners to ensure that you have the support you need to make that dream of home ownership a reality.

Get Started