How to Budget for a House

Purchasing a home is no small feat. It’s the largest purchase most people will ever make and if you’re in the market for one, you may want to tighten the purse strings in preparation. In addition to the costs that are associated with a home purchase, you should also be prepared for the additional expense that comes along with being a homeowner. Things like regular home maintenance, such as roof repairs, replacing the water heater, fixing the dishwasher, can all add up, which means your current budget may need some adjusting.

6 Tips to Get Your Credit in Shape Before Buying a House

Your credit score is one of the “Big 3” taken into consideration by lenders when deciding if they will approve you for a home loan. Out of the Big 3 (credit, collateral, capacity), it is fear of credit scores that can be the cause behind many employees putting off or avoiding homeownership. Don’t let credit be the challenge that obstructs your dream of owning a home. Having a good credit score could save you big when you purchase your new home, and its never too early to start preparing.

Refinancing – When is the Right Time?

Rates are low and there’s a mini refinance frenzy happening. A large portion of home owners are doing it, but should they? It’s difficult for most people to really know if refinancing is in their best financial interest. The standard rule used by previous generations was, if the interest rate dropped by at least 1% then it made sense to refinance. It would do you good to throw that rule right out of the window! There are points and fees that can be built into the loan to reduce the rate, making it appear that you are truly reducing the cost of your mortgage. Buyer beware! Often times, while the interest rate is lower, you could be paying high fees to get it. You can improve your chances of making a sound financial decision by understanding the basic concept of break even and how to calculate it.

What You Need To Know About Private Mortgage Insurance (PMI)

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

Why Is So Much Paperwork Required To Get A Mortgage?

When buying a home today, why is there so much paperwork mandated by the lenders for a mortgage loan application? It seems like they need to know everything about you. Furthermore, it requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

National Homeownership Month

 Homeownership is an essential part of the American Dream! This month, we celebrate National Home Ownership Month and those whose success and determination have helped make them homeowners. June also brings hope and excitement to those who are pursuing home ownership. It’s common knowledge that the benefits of owning a home go way beyond building wealth. Home ownership gives people a place to build their life memories, a place to raise families, a place to celebrate with those we care about, and a place of our own that gives us stability and a sense of pride within our communities. Home ownership changes lives and enhances futures.

Do 46 Million Millennials Know They Are Mortgage Ready?

Do 46 Million Millennials Know They Are Mortgage Ready?

Many have written about the millennial generation and whether or not they, as a whole, believe in homeownership as part of attaining the American Dream.

Millennials have taken longer to obtain traditional milestones than the generations before them, such as getting married, having kids, and buying a home. However, that does not mean that they do not still aspire to achieve those things.

History shows that people tend to buy their first home around age 30. Nearly 5 million millennials will turn 30 in the next two years. This will continue to fuel demand for housing.

This is also one of the many reasons why the millennial homeownership rate has continued to grow over the past few years. 48.4% of Americans between the ages of 30-34 now own a home.

There are over 46 million millennials (33% of the generation) who are considered “Mortgage Ready”, meaning they meet the qualifications to be approved for a mortgage today!

  • a FICO Score ≥ 620
  • a Back-End Debt to Income Ratio ≤ 25%
  • no Foreclosures or Bankruptcies in the last 7 years
  • no severe delinquencies in 1 year

Rob Chrane, CEO of Down Payment Resource, commented on the findings of the report,

“We now know there are millions of buyers with the income & credit necessary to qualify to buy a home. The biggest question is:

Do they know it? …Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it’s an option.”

The good news is that more and more millennials are realizing that they can afford a home now. Even so, more can be done to increase awareness of low down payment programs to attract even more of this generation.

New data from shows that in December, millennials accounted for 42% of all new home loans originated in the month. This is more than any other generation.

Bottom Line

If you are one of the many millennials who may be “Mortgage Ready” but are unsure what your next steps should be, you have an Employee Home Ownership Program designed to help you get answers to all of your questions and to save you money along the way.  Reach out to your benefits adviser by emailing  Lets get together to help guide you on your path to homeownership!

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