The cost of renting vs. buying a home is a common dilemma that many individuals face. While renting may offer flexibility and lower upfront costs, buying a home can provide long-term financial benefits and a sense of ownership. However, navigating the home-buying process can be overwhelming, especially for first-time buyers. That’s where Pilgrims Mortgage comes in, offering expert guidance and assistance to make the dream of homeownership a reality. One of the primary advantages of buying a home is building equity over time. As you pay down your mortgage, you accumulate ownership in your property, which can increase in value, providing a financial cushion for the future. In contrast, rent payments only benefit the landlord, with no long-term financial gain for the renter. Additionally, owning a home allows for tax benefits like mortgage interest and property tax deductions, which can reduce your taxable income. On the other hand, renting may seem more affordable initially, with lower monthly payments and no need for a significant down payment. However, rental prices can increase over time, and renters may face lease renewal uncertainties. Moreover, renters miss out on the opportunity to build equity and benefit from potential property appreciation. Pilgrims Mortgage understands the challenges of homebuying and offers comprehensive support to make the process smoother. Their experienced team helps clients understand their credit options, choose the best mortgage program, and navigate the complex paperwork. With access to various lending sources, Pilgrims Mortgage can provide competitive interest rates and flexible financing options. They understand that every client’s financial situation is unique and takes the time to understand their needs, providing personalized advice and solutions. In conclusion, while renting may seem like an easier option, buying a home offers long-term financial benefits and a sense of ownership. With the expert assistance of Pilgrims Mortgage, the home-buying process can be more manageable and less overwhelming. Take the first step towards owning your dream home and building a brighter financial future with Pilgrims Mortgage.
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed-rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history! The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power. Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget. The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year. Act now to get the most house for your hard-earned money. Source: https://www.keepingcurrentmatters.com/2018/05/22/how-current-interest-rates-can-have-a-high-impact-on-your-purchasing-power/
So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection. This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed. How to Choose an Inspector Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. HGTV recommends that you consider the following 5 areas when choosing the right home inspector for you: Ask your inspector if it’s okay for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed. Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more! Bottom Line They say ‘ignorance is bliss,’ but not when investing your hard-earned money into a home of your own. Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase. Source: https://www.keepingcurrentmatters.com/2018/05/08/home-inspections-what-to-expect/
Some homeowners have recently done a “cash out” refinance and have taken a portion of their increased equity from their houses. Others have sold their homes and purchased more expensive homes with larger mortgages. At the same time, first-time buyers have become homeowners and now have mortgage payments for the first time. These developments have caused concern that families might be reaching unsustainable levels of mortgage debt. Some are worried that we may be repeating a behavior that helped precipitate the housing crash ten years ago. Today, we want to assure everyone that this is not the case. Here is a graph created from data released by the Federal Reserve Board which shows the Household Debt Service Ratio for mortgages as a percentage of disposable personal income. The ratio is the total quarterly required mortgage payments divided by the total quarterly disposable personal income. In other words, the percentage of spendable income people are using to pay their mortgage. Today’s ratio of 4.44% is nowhere near the ratio of 7.21% during the peak of the housing bubble and is instead at the lowest rate since 1980 (4.38%). Bill McBride of Calculated Risk recently commented on the ratio: “The Debt Service Ratio for mortgages is near the low for the last 38 years. This ratio increased rapidly during the housing bubble and continued to increase until 2007. With falling interest rates, and less mortgage debt, the mortgage ratio has declined significantly.” Bottom Line Many families paid a heavy price because of questionable practices that led to last decade’s housing crash. It seems the American people have learned a lesson and are not repeating that same behavior regarding their mortgage debt. Source: https://www.keepingcurrentmatters.com/2018/04/19/is-family-mortgage-debt-out-of-control/
How do you select the members of your team who are going to help make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender? The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market. As the financial guru Dave Ramsey advises: “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” Do your research. Ask your friends and family for recommendations of professionals they’ve worked with in the past and have had good experiences with. Look for members of your team who will be honest and trustworthy; after all, you will be trusting them to help you make one of the biggest financial decisions of your life. Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake. According to the Home Buyer and Seller Generational Trends Report: “Buyers from all generations primarily wanted their agent’s help to find the right home to purchase. Buyers were also looking for help to negotiate the terms of sale and to help with price negotiations.” Additionally, “Help to understand the purchase process was most beneficial to buyers 37 years and younger at 75 percent.” Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home. Bottom Line In this world of Google searches, where it seems like all the answers are just a mouse click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it. Source: https://www.keepingcurrentmatters.com/2018/04/03/what-should-you-look-for-in-your-real-estate-team/
Some Highlights: Source: https://www.keepingcurrentmatters.com/2018/05/11/3-tips-for-making-your-dream-of-owning-a-home-a-reality-infographic/