Can I Buy a House?
With rent continually on the rise, you may be thinking about purchasing a home. But you don’t know if you can afford it or get approved, so you don’t bother.
We’re here to tell you that buying a home is more possible than you think. And we can show you how the first step is the most important in finding a place to call your own.
Renting vs. owning
Have you delayed buying a home because of upfront costs and high interest rates? When it comes to buying a home, time is money. If you wait, you could lose out — not just on the chance to find the perfect home, but also on the money you could save in the long run. Most surprising fact, though? You don’t even have to save for a down payment.
The advantages of renting vs. owning
| Renting | Owning |
|---|---|
| After each payment, that money is gone | Each payment builds wealth & equity |
| Can’t make major changes to the property | Freedom to renovate (think dream kitchen!) |
| Rental prices can go up with lease renewal | Monthly mortgage payments stay the same |
| You’re paying a mortgage, just your landlord’s | You’re paying down your own mortgage |
| No tax advantages | Tax advantages |
Calculate the big difference of owning
Numbers don’t lie. And when you crunch them, you’ll find that owning a home is not only possible — it’s profitable. See where your potential stands to find a house you can afford.
Understanding your credit report
Your credit score can impact your ability to buy a home and determine the terms of your mortgage — but your credit doesn’t have to be perfect! We have many ways to get first-time homebuyers into homes they love with a less-than-perfect credit report.
How to keep it strong and get approved
- Pay your bills on time – 30+ days overdue bills can lower your score by 10 points
- Try not to close accounts – Keep old credit accounts open and active
- Minimize credit applications – Don’t apply for credit you don’t need
- Keep your balances low – A 30% ratio of balances to available credit is ideal
How much home can you afford?
Understanding your expenses
Preparing to buy a house also means setting a budget. How much house can you afford? There’s a lot to consider, including money for private mortgage insurance (PMI) and property taxes. Staying on budget means staying ahead of the game.
See how we can help pinpoint your household budget.
What makes up a monthly mortgage payment?
Your monthly mortgage payment is made up of four parts. With one payment, that means you only have one due date. And it also means you’re paying off your loan, protecting your home with insurance, and staying up to date on taxes while building your equity.
- Principal – a portion of the amount borrowed or remaining unpaid
- Interest – the amount charged by the lender for borrowing money
- Taxes – the amount charged by the municipality based on the property value
- Insurance – policy that protects you against financial loss in the event of property damage
Your debt-to-income ratio
To find out if you can make a mortgage payment, mortgage lenders review your income over the last two years. And if you have variable income because you’re self-employed or operate on commission, no problem — it’s to understand your debt-to-income (DTI) ratio. Which is your monthly debt against your income. Typically, the lower your DTI, the more financing options you have.
DTI too high? Learn helpful tips on how to lower yours and increase your chances of getting into the home you love.
How much do I need for a down payment?
You don’t have to put 20% down to own your first home. Of course, you can, and it has plenty of advantages. But many home loan programs allow you to buy a home with as little as 3% down — or even NO money down with down payment assistance!
Your free personal financial consultant
We make the process as clear as possible while offering pathways to homeownership you might not come across on your own. We offer loan programs that fit who you are and where you are in the process. Find out how we can guide you through the entire process from beginning to end.