After living as renters for the first seven
years of their marriage, Geoff and Kristi decided it was time to purchase their
first house.
They decided to pass on making a purchase
earlier in their lives for reasons ranging from unstable job security to high
mortgage rates. Whether justified or not, Geoff and Kristi kept making excuses
for not pulling
the trigger on a new-home purchase. They had no idea of the
opportunity they were missing to start building their personal wealth through
home ownership.
As time moved on and their family grew, they
knew they finally needed to make that
move to build some equity and have something to show for the
money they were dishing out just to keep a roof over
their heads.
“A lot of people have been misinformed,
resulting in becoming content to live as renters,” says Joe Puthur, President of
Mortgage Coach (www.mortgagecoach.com). “Families have
been missing out on opportunities because of lack of knowledge. With today’s
mortgage options, people can achieve affordable home ownership wherever they want
to live.”
Puthur
offers first-time home owners the following insight to help find the
right mortgage:
-
The best mortgage option is not always about rate. Many loans come with advantages such as working in the cost of planned renovations – like adding a bathroom or modernizing a kitchen – into your loan. When shopping for a loan, do not just look at the rate as the bottom line; find out what types of perks different loans offer.
-
Your occupation might get you a better mortgage. Lenders have programs with discounted closing rates available for teachers, doctors, firefighters, police officers and those who are self-employed. Make sure you ask your lender if there are programs like this available for your profession.
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Veterans: Make the most of government incentives. VA loans are available to veterans of the U.S. military, current service members or former military spouses who are not remarried. The advantages of a VA loan when compared to traditional loans include: No down-payment for qualified buyers, easier qualification process, better interest rates and no requirements to purchase Private Mortgage Insurance. A VA loan isn’t controlled by Veteran’s Affairs, only guaranteed by the VA, meaning those qualified for the loans have a number of options when it comes to lending institutions. Every veteran can and should own a home.
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Consider your home as the most important investment you’ll ever make. Every month that you make a mortgage payment you are building equity, which is the portion of the property that you actually own, versus what you still owe. As time goes on, your equity goes up and you can leverage the value to provide college funding, access financial support for unexpected emergencies, or even to purchase an investment property. Your equity also provides retirement security. And as a long-term investment, homes generally appreciate in value, providing a profit when you decide to sell.
A mortgage is not a typical loan, it is a
financial instrument enabling wealth creation and access to affordable home
ownership. Interest rates on a quality mortgage continue to be below 5%
regardless of program. Considering this time in 1997
rates were often over 9%, this is one of the most favorable
times in history to buy a home, an opportunity no one
should miss.
“It is not complicated to escape the rental
trap, own the perfect home and start building equity toward a better future,”
Puthur says. “Homebuyers just need a trusted mortgage professional who can help
them make an effective, informed and confident decision. After all, the
perfect home is not only where they will make memories, it is
a key contributor for growing their family’s wealth and financial security
over time.”
About Joe
Puthur
Mortgage Coach President Joe Puthur has been
a technology leader throughout the last 15 years. His mortgage industry designs
have always pushed the envelope and now he is helping the industry embrace the
mobile revolution through Mortgage Coach (www.mortgagecoach.com). Puthur was the founder and
former CEO of Lasso Technologies, a start-up that pioneered bringing Loan
Origination Software online. In 2005, Ellie Mae acquired Lasso Technologies to
create Encompass Anywhere, the largest SaaS offered LOS. Puthur has been
selected multiple times among the “40 Most Influential Leaders in the Mortgage
Industry Under 40” by Mortgage Professional
magazine.
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