To rent or to buy a home: that’s the question

There's no place like home, but there's a big difference between renting and owning a home. And deciding to go from renter to homeowner takes some serious thought. Buying a home is a big choice with many factors to consider—often one of the biggest purchases a person makes in their life. If you’re thinking about embarking on your first-time home buying journey, read on for some benefits of homeownership, a list of questions to ask yourself, and a quick overview of the home buying process.

Some benefits of homeownership

Homeownership can offer many benefits, including the following:

Control. Owning a home can offer the creative freedom to truly make it your home which renting doesn’t allow. Whether that’s installing the marble countertops you’ve been daydreaming about, replacing outdated fixtures, designing a luxurious spa bathroom, or (insert your idea here). Plus, home improvement projects could boost your property’s value.

Financial investment. The decision to buy a home isn’t small. However, it’s a long-term investment that can come with the possibility of big financial opportunities, including building home equity to tap into in the future, increasing wealth through equity, and financial stability with a fixed monthly payment.¹

Community. Homeownership may provide an increased sense of community. It can create stability for various reasons, such as not worrying about changing rental agreements and homeowners generally live in the same home for a longer duration. As a result, there could be greater engagement and support among neighbors and other community members.

Questions to ask yourself before buying a home

Before buying a home, educating yourself so that you make an informed decision is very important. To help you feel more equipped with knowledge, here are some questions to consider.

What’s my financial situation like? Spend some time reviewing your finances to understand where they’re at. What’s your debt? Do you have any savings? Are there any upcoming big expenses that you’re aware of? Knowing your financial situation will help you gain clarity about what you can take on with a home purchase, set a realistic budget for yourself, and go into an appointment with a loan officer feeling prepared.

What am I ready to take on with homeownership? Becoming a homeowner after renting can come with added responsibilities and costs. They may include keeping up with regular home maintenance, planned updates or unexpected repairs, additional insurance (e.g., homeowner’s insurance, private mortgage insurance), HOA dues, and utilities. Being aware of what you may need to take on with homeownership and what you’re ready to take on is helpful to feel more prepared. You can factor anticipated costs into your home buying budget.

What are my home financing options? There isn’t a one size fits all approach to financing a home. That’s why a variety of home loan programs exist. From fixed- to adjustable-rate terms, low to no downpayment options, conforming to non-conforming products, special incentives for first-time buyers, and more. You may qualify for multiple loan types, and it’s important to make sure you understand each one. An experienced loan officer can help you identify an option that’s suited for your unique situation and needs.

An overview of the home buying process

Find a trusted home loan lender and loan officer. They’ll work with you to identify your homeownership goals and help you find the right loan solution to achieve them. 

Get preapproved² for a home loan. This will let you know how much home you can afford, so you can shop with more confidence.

Something to keep in mind is that preapproval is different from prequalification. It’s often a firmer assessment of how much loan you could secure. And not all preapprovals are alike. Lenders or brokers may follow different criteria or have different programs.

At Evergreen, our preapproval options include our exclusive Security Plus program³ which could give your offer a powerful advantage. We preapprove qualified buyers with a fully underwritten loan amount that’s guaranteed, or we pay the seller $5,000 because we're so confident in this program. It’s stronger than the average preapproval, making it easier for the seller to say yes.

Before you visit with a loan officer to get preapproved, it’s a good idea to have the following items ready:

• Your most recent pay stub
• W-2 statements for the last two years
• Bank statements for the last two months (all pages)
• Year-to-date profit/loss and balance sheets (if you’re self-employed or work commission sales), as well as tax returns for the last two years

Work with a qualified real estate agent. The right agent will search listings with your priorities and goals in mind, from a fenced backyard to a walk-in closet. If you don’t already have an agent, we can help you find one.

Become a homeowner. This is the end goal that you’ll work with your real estate agent and loan officer to achieve. Their role is to be there for you throughout your home buying and financing process.

We’re here to help

Are you ready to stop renting and take the first steps toward becoming a homeowner? Our team of home loan experts at Evergreen is here to help. Get in touch with one of our loan officers who will spend time listening to your individual needs, walk you through your financing options, and find a solution that’s right for you!

1. Source: https://www.keepingcurrentmatters.com/2022/03/28/a-key-to-building-wealth-is-homeownership/. 2. Preapproval is not a commitment to lend and is subject to satisfactory loan conditions including a completed application and property appraisal. Other terms and restrictions apply. Not all products available. 3. Applies to purchase loans only. To qualify, buyer's Security Plus Approval/Seller Guarantee Addendum must have been issued by Evergreen and the Seller shall have executed the addendum with their signature. Certain loan types do not qualify for this offer. Restrictions apply.