Have you ever wondered just how much money you’ve sent your landlord? A $1,750 rent will cost you $21,000 in just one year, $105,000 in five years, and $210,000 in 10 years. And that's if your rent never increases (and there's almost no chance of that). All that rent money goes to your landlord; none of it goes toward your own future.
We’re in Historic Times
With interest rates near historic lows, many first-time homeowners have taken the money previously spent on rent and used it for their own home loan. In some cases, a typical rent payment and a typical loan payment are about the same. In fact, the rent payment on the property you're in now is probably higher than the loan payment would be on the same property.
The concept is simple: Invest your rent check into a home of you own. Unlike rent payments that get you nothing long term, your loan payment builds equity over time. Combined with the appreciation in Hawaii, homeownership builds real wealth over time.
Where do you start? First, chat with your Locations agent about what's most important to you in a home. Then, you and your agent will create a personalized plan to find the property that meets your unique goals and needs. Next, your agent will arrange a call with a loan officer to find how much you can comfortably afford to spend on a loan payment each month.
Your loan officer will provide you with a free credit report from a number of agencies. It’s important to review this report to make sure it’s up to date and doesn’t contain errors that could negatively affect your credit. If you discover you have credit issues, your loan officer can advise you on how to remedy them. Most credit issues can be repaired.
New homeowners often worry that they need 20 percent of the purchase price as a down payment. The good news is there are loan programs available that require only 3 to 5 percent down. And two programs require no down payment at all. VA loans are a great example of one of these zero-down loan programs. And if you don’t qualify for a VA loan, there is the USDA loan that is also zero down. Your Locations agent and loan officer will make sure that you are aware of all your options.
No More Procrastination
If you’ve dreamed of owning your own home, there has never been a better time to take advantage of today’s unique market dynamics to invest in yourself and your future. There is no cost to homebuyers to work with an agent. When you're ready, call your Locations agent to get started or find an agent here.