There’s a reason homeownership is the foundation of the ...



Pursue Your Dream of Homeownership

With rates at historic lows and a housing market that is bouncing back, opportunities for first-time homeowners abound

Eighty percent of America’s families believe that buying a home is a good financial decision and sixty-eight percent report that now is a good time to buy*. Additionally, more renter households are considering homeownership due to high housing affordability levels. In fact, in many areas of the country, it’s cheaper to own a home than rent.

Cost aside, the “American Dream” of homeownership provides an opportunity to build equity and stability over time, become a part of a community, and create a home that is uniquely yours.

For homebuyers with secure jobs and strong credit, today’s market is very affordable and it is a good time to buy your first home. Here’s why:

▪ Mortgage rates are still at historic lows – around five percent for a 30-year fixed-rate mortgage – providing you with more home purchasing power. To give you an historical perspective, in January 2000, mortgage rates were 8.21; and in the early-1980s, they exceeded 18%!

Keep in mind that mortgage rates are on the rise. If you wait too long to buy, you could find yourself with a higher rate that impacts how much you can afford.

▪ The market is trending up – creating opportunities for you to build equity over time. Because home values are rising in many areas of the country, if you sit on the sidelines too long, you may lose out on good buying opportunities.

Are You Ready for Homeownership?

The best way to know if you should become a homeowner is to do your homework and determine if you are financially ready. Homeownership is most likely the largest financial commitment you will ever make, and it is more important than ever that you are financially prepared and financially stable.

How do you know if you’re financially prepared? You are on a good path if:

❑ You have a good, steady income that you can document

❑ Your credit history is strong

❑ You can afford at least a five percent down payment plus closing costs

❑ You have funds on hand for emergencies – like home repairs, temporary loss of income or medical situations

Also, take the time to prepare for successful, long-term homeownership and seek out good pre-purchase housing counseling from a HUD-approved counseling agency (). Or, take the online, self-paced CreditSmart® tutorials offered by Freddie Mac to learn important aspects of credit and homeownership. Visit creditsmart/consumer_training.html to learn more.

If you are ready for homeownership, call me today and we’ll get you started with these key steps:

1. Select a lender. You’ll want to find a lender that is reputable, trustworthy, and offers financing options that meet your needs. [Business name] can share practical tips on choosing an appropriate lender. Friends and colleagues are also excellent sources for lender referrals.

2. Go through the pre-approval process and determine how much you can afford. Pre-approval is critical before you start shopping for a home. Not only does it help determine how much home you can afford, it allows you to make an offer quickly – which is important in many markets.

3. Look for your home. [Business name] will be with you every step of the way in choosing your first home, from evaluating neighborhoods to negotiating a good deal for you. We’re here to answer any questions you may have as you go through the homebuying process.

If you decide to take the step to homeownership, remember that being financially prepared and doing your homework early in the process are key to becoming a long-term, successful homeowner.

* 2013 NAR Housing Pulse Survey

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Good to Know: Despite rising home prices and mortgage interest rates, a breakout of income requirements to buy a median-priced home shows qualified buyers in most markets remain well positioned to afford a home in their area.*

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