For those who have been considering buying their first home for some time, taking that first plunge into the mortgage world may seem intimidating. But for those who are ready, entering homeownership is extremely beneficial in several ways, from building equity in an investment to being your own landlord.
At Primary Residential Mortgage, we’re proud to offer numerous mortgage lender services, including programs like FHA loans and others that are often ideal for first-time homebuyers entering the market. We’ll also assist you with several other elements of entering the mortgage application and home loan world, plus will advise you on whether this is the ideal timing given your financial situation and desires for your home. Here’s a primer on why owning a home is so advantageous if you’re able to move forward, plus the first step you should take if you’ve made the choice to do so.
Advantages of Owning a Home
There are several advantages of owning your own home rather than renting, including each of the following:
- Building equity: A home is an investment, one you’re paying toward greater and greater ownership in as you move forward with your mortgage. Each mortgage payment increases your equity in your home, equity that can be used for a variety of purposes, including covering future expenses or refinancing.
- Your own landlord: When you own your home, you have no landlord other than yourself. No pet restrictions, no limitations on your design capabilities, and full freedom to control your space.
- Savings plan: When you stop paying rent to a landlord, you begin freeing up money to build up as a savings plan in addition to mortgage payments.
- Stable payments: While rent tends to increase over time, even if you live in the same location, this is not the case when you own. Rather, with a fixed-rate mortgage, your mortgage rates and monthly payments stay consistent or even might drop over time as you pay them down.
Pre-Qualification First Step
If you’ve decided to move forward with your dreams of homeownership, pre-qualification through a lender is your best first step. This is a process where your loan officer will ask you about things like your income and what you can afford to pay on a mortgage payment, your current assets for a down payment, your credit score and history, and potentially several others.
After going over these details, your lender will be able to give you a price range of homes you’ll qualify to look at. They can also give you a pre-qualification letter that you can show to real estate agents and sellers to show them you’ve already investigated your purchasing power. While more official documents such as pre-approval will be needed eventually, pre-qualification is how you get the ball rolling on this process.
For more on the benefits of homeownership and the first step to take when entering this realm for the first time, or to learn about any of our home loan services, speak to the staff at Primary Residential Mortgage today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.