Should I Rent or Should I Buy?
We recognize that not everyone is prepared or has the desire to become a homeowner.  That said, It's worth weighing some of the benefits of homeownership before you make the decision to continue renting or to buy a home.

Are You Wondering if this is the Year to Buy a Home?
To make an informed and powerful decision, the first step is understanding what’s happening in today’s housing market so you can determine which option is the better long-term financial decision for you.

The Emotional Benefits of Homeownership

As a homeowner, you can feel proud of the space you call home and know you’ve made a sound financial investment.

A Key to Building Wealth is Homeownership
The link between financial security and homeownership is especially important today as inflation rises.  But many people may not realize just how much owning a home contributes to your overall net worth.  Homeownership is rewarding ain so many wanys and an serve as a vital component in achieving financial stability.

How Homeownership Can Bring You Joy

The benefits of homeownership extend beyond the emotional. Owning your home is a cornerstone of achieving financial success.

Owning a Home is a Significant Step Toward Financial Stability.

Owning a home continues to be a proven method for building long-term wealth. . . Home values generally grow over time, so homeowners begin the wealth-building process as soon as they make a down payment and move to pay down their mortgage. 

Avoid the Rental Trap in 2022
Are you one of the many renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.

SEARCH VALLEY RENTALS  A Valleywide search of available residential rental properties.

1. Your Down Payment

As you set your savings goal for your purchase, your down payment is likely already top of mind. And like many other people, you may believe you need to set aside 20% of the home’s purchase price for that down payment – but that’s not always the case. The National Association of Realtors (NAR) says: “One of the biggest misconceptions among housing consumers is what the typical down payment is and what amount is needed to enter homeownership. Having this knowledge is critical to know what to save . . .”
The good news is, you may be able to put as little as 3.5% (or even 0%) down in some situations. To understand your options in today’s market, ask us to go over the various loan types, down payment assistance programs, and what each one requires.

2. An Earnest Money Deposit

While it isn’t required, an earnest money deposit is common in today’s highly competitive market. It’s money you pay as a show of good faith when you make an offer on a house. First American explains how it works:
“This deposit is typically held in trust by a third party and is intended to show the seller you are serious about purchasing their home. Upon closing the money will generally be applied to your down payment or closing costs.” 
In other words, an earnest money deposit could be the very first check you’ll write toward your purchase. The amount varies by state and situation, but says you can typically plan for 1-2% of the home’s purchase price. 

3. Your Closing Costs

The next thing to plan for is your closing costs. The Federal Trade Commission (FTC) defines closing costs as:
“The upfront fees charged in connection with a mortgage loan transaction. . . . generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for taxes and insurance.”
Basically, your closing costs cover the fees for various people and services involved in your transaction. Plan to budget for roughly 2% of the home’s purchase price. Freddie Mac sums up why this matters to you and your homebuying journey like this: “If you’re in the market to buy a home, your down payment is probably top of mind. And rightly so – it’s likely the biggest cost of homebuying. However, it is not the only cost and it’s critical you understand all your expenses before diving in. The more prepared you are for your down payment, closing and other costs, the smoother your homebuying journey will be.”

Bottom Line

Knowing what to budget for in the homebuying process is essential. To make sure you understand these and any other expenses that may come up, let’s review your options together.

Download our Buyer's Guide