The choice between buying a home and renting one is among the most significant financial decisions many adults will ever make. If we learned anything over the past year with COVID-19, our home, our haven, is of the utmost importance. Our home is not just the roof over our head; our home has kept us safe and sheltered.
As more of our workforce population continues to work from home, is now the right time to buy? Cities are seeing tenants vacate to the burbs and become first-time homebuyers with this new normal. As we walk you through the process, you may see that now is the time to buy based on your current living conditions and working from home. Interest rates are at an all-time low, and in most cases, your mortgage is less than a rental payment.
What are the pros and cons?
The pros of buying a home outweigh renting, with building equity at the top of the list.
Biden's first-time homebuyer tax credit is headed to Congress. If the act passes, first-time buyers of all backgrounds could claim a one-time tax credit worth 10% of their home's purchase price, up to $15,000.
According to the bill's current text, homes purchased after December 31, 2020 could qualify. The bill's sponsors say it's an effort to reduce the barriers to homeownership—particularly in the face of rising home prices.
*This is subject to revision by Congress
Since this bill has not yet passed Congress, you as the buyer have more options for down payment assistance. Reach out to one of our loan officers today.
If the entire process seems overwhelming, follow our checklist to get started.
- Credit Score Check
- Determine Affordability
- Down Payment Saved
- Reach Out to Eustis Mortgage for Prequalification
- Find a REALTOR®
- Begin House Hunting
Most Common Questions Buyers Ask:
1. Where and how do I pull my credit?Reach out to one of our loan officers and they will pull your credit and review the details with you at no charge. Alternatively, you can pull your own credit once annually at www.annualcreditreport.com. If you have a credit monitoring service and you are able to see your scores, make sure the service does not apply a hard credit pull as this could hurt your credit scores. Be wary of other services that offer a free credit report as they can negatively affect your credit. Lastly, understand that a mortgage credit report is different from a consumer credit report and weighs different factors in determining your credit score. Don’t be surprised if you decide to use a service on your own first and your score is slightly different when you come to us.
2. What is the first step in the home-buying process?
Get prequalified
3. How long does it take to close on a home?
30-45 days
4. How much do I have to pay a REALTOR® for their service?
Nothing. Unless negotiated otherwise, the Seller pays the commission.
5. What kind of credit score do I need?
Usually, 620+
6. My partner and I are not married. Can we purchase the home together?
Yes
Have you ever been in a lease and you are all ready to renew, and the property management firm denies the renewal and says, "the owner is going to sell"? Receiving a non-renewal of lease leaves you scrambling, usually 30-60 days before the lease expiration, to find a new place to live.
When you purchase your own home, you never have to worry about this again. You're building equity for your future. Statistics show it's very uncommon that real estate depreciates. There is only so much land to build on.
Reach out to one of our Loan Officers today. We will be there every step of the way. From pre-qualification to closing and beyond, Eustis Mortgage will be there.
