Owning your home provides several substantial financial benefits compared to renting. In addition, financing a home is often far simpler and more achievable than most consumers understand.
A Major Difference – Own vs. Rent
Aside from escaping rent hikes or a landlords list of rules, owning your own home is a financial game changer. In addition, financing a home is easier than many think. In this section of our website we help you explore the following:
By making the choice to consider home ownership, a renter opens themselves up to a better financial future. In addition, the freedoms that come from owning your own home are not too bad either!
Home-ownership Builds Wealth
Its a known fact among renters – tenants pay their landlord’s mortgage balance down with each rental payment made. However, the financial discrepancy between owning a home and renting goes well beyond that.
84% of all buyers viewed a home purchase as a good investment.
2019 NAR Home Buyer and Seller Generational Trendsopens PDF file
Home-ownership provides several financial advantages compared to renting. In fact, over time the Real Estate – wealth building gap between a home-owner and a renter grows exponentially. For example, owning a home creates the following:
- Stable & Fixed mortgage payments (no annual rent hikes)
- Declining mortgage provides owner with equity
- Rising home value expands owner’s equity
- Tax benefits
For home-owners, annual home appreciation, a decreasing mortgage balance and tax benefits combine expanding their wealth. On the contrary, renters do not experience the same advantages and as a result their financial wealth can be stifled as it relates to Real Estate.
Down Payment – How Low Can you Go?
Many prospective home-buyers believe 20% down payments are a must in order to finance a home. Nothing is further from the truth. Did you know that according to NAR, in 2019 the average down payment for ALL buyers (including cash buyers) was 13%.
Home-buyers today have access to so many no to low down payment home loan options when financing a primary residence. For example:
- 0% Down VA Home Loans
- 0-3% Arizona Down Payment Assistance Loans
- 3% Down Conventional Mortgages
- 3.5% Down Payment FHA Home Loans
Where do Most Buyers Get Their Down Payment?
Buyer’s obtain their down payment from a variety of sources. In fact, today’s flexible home loan products allow for down payment funds to come from multiple sources. For example, down payment and closing cost funds may come from:
- Checking/Savings account funds
- 401k (both withdrawals and/or loans)
- Gift funds from family members
- Arizona Down payment assistance loan programs
- Sale of an asset (ex: a car)
- Donations/Gifts fro Acceptable Entities
- Employer Assistance
- Gift of Equity (when purchasing a family member’s property
Mortgage Qualification Simplified
Before you can begin looking in earnest, however, you need to get qualified** for a mortgage. Mortgage loan qualification is what starts the homebuying process. You’ll provide information on your credit, income, assets and debts so we can give you an estimate of the size of a loan you can afford. There’s never a charge to get qualified with us. Typically, we complete the process within 24 hours.
The scariest part about the process is not knowing. Our team helps clients who are ready to buy today as well as those in need of a plan to become ready in the near future.
