Owning Your Home Helps You Build Wealth

You may have heard some people say it’s better to rent than buy a home right now.

But, even today, there are lots of good reasons to become a homeowner. One of them is that owning a home is typically viewed as a good long-term investment that helps your net worth grow over time.

Homeownership Builds Wealth Regardless of Income Level

You may be surprised to learn homeowners across various income levels have a much higher net worth than renters who make the same amount. Data from First American helps illustrate this point (see graph below):

What makes wealth so much higher for homeowners? A recent article from Realtor.com says:

“Homeownership has long been tied to building wealth—and for good reason. Instead of throwing rent money out the window each month, owning a home allows you to build home equity. And over time, equity can turn your mortgage debt into a sizeable asset.”

Basically, the wealth you accumulate when you own a home has a lot to do with equity. As a homeowner, equity is built up as you pay down your loan and as home prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this same benefit isn’t true for renters in a recent podcast:

“Renters as non-homeowners gain no wealth benefit as home prices rise. That wealth actually accrues to the landlord.”

Before you decide to sign another rental agreement, now is a good time to think about whether it would be better for you to buy a home instead. The best way to figure out what makes sense for you is to have a conversation with a real estate expert you trust. That professional can talk you through the benefits that come with owning to determine if that’s the right next step for you. 

Bottom Line

If you're not sure whether to keep renting or to buy a home, know that owning a home, no matter how much money you make, can help build your wealth. Connect with a local real estate agent to get started on the path to homeownership.

Related Links

• U.S. Housing Starts Fall 8% in June, Biggest Drop in a Year

• The 8 Mortgage Mistakes You Can’t Afford to Make

• Today’s Housing Inventory Is a Sweet Spot for Sellers

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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The 8 Mortgage Mistakes You Can’t Afford to Make

Picking out the perfect home can be a challenging task. But that’s only the first step. You still need to be an attractive loan candidate, navigate the mortgage process and plan well for the future.

Since all that can get a little tricky, many home buyers made mortgage mistakes that cost them dearly.

In order to avoid some of the biggest missteps, you should first know what they are.

1. Picking any old mortgage

You don’t want to be saddled for even a short period of time with the wrong mortgage.

Investigate all of your options, and then you need to lay your choices side-by-side and do the math—making sure you have an emergency savings for worst-case scenarios.

Loan shop with several different lenders and use a mortgage calculator to fine-tune your estimates.

2. Confusing pre-approval or pre-qualification with commitment

When you’re pre-qualified, the lender is simply giving you an estimate about how much you can borrow based on information you’ve provided.

When you’re pre-approved, the lender has verified everything you’ve provided and is offering to lend you up to a given amount at current interest rates—under certain conditions.

It’s much better to be pre-approved when shopping for a home, but it’s still not a guarantee: the lender’s final clearance and a loan commitment are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check and other verifications.

3. Having too much debt

Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you—that is, your debt-to-income ratio—as they do on timeliness.

Being up to your ears in debt is a sure way to be turned down for a mortgage. Postpone any big-ticket purchases until after you buy your house.

4. Forgetting about your credit

Before you apply for a loan, you should know your credit score and credit report inside and out.

Thoroughly check your credit report for any possible mistakes. You can order a free credit report from each of the big three credit report agencies—Equifax, TransUnion and Experian—once a year.

If you see a mistake, dispute it. If your credit is bad, that’s okay: just work on repairing it before you apply for a mortgage.

5. Lying on your loan application

Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense.

If a lender finds out, they can make your loan due and payable. And while bad loan officers may stretch the truth to get a client approved, it’s the borrowers who end up paying the price.

6. Hiding from payments

The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments.

Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure, but they can’t do anything for you unless they can talk to you about your difficulties.

7. Skipping a home inspection

Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake.

Good home inspectors examine houses from stem to stern. They’ll be able to tell you whether the roof or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last.

Don’t get caught off guard by needed repairs, or it will mean more money for your mortgage payments.

If you’re unsure of where to find a good home inspector, ask your agent for a referral. 

8. Making big life changes

Lenders like stability.

It’s a good idea to have kept your job for at least a year or two before applying for a mortgage, and it’s even more important to keep your job throughout the mortgage process.

If you’re looking to switch jobs, wait until after you’ve closed the deal.

Get more like this on Realtor.com

Related Links

• U.S. Housing Starts Fall 8% in June, Biggest Drop in a Year

• 4 Tips for Air Conditioning Care to Keep in Mind Over the Summer

• Today’s Housing Inventory Is a Sweet Spot for Sellers

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado
Search Homes in Oklahoma
Search Homes in Oregon
Search homes in Minnesota

Featured at West + Main Louisville: Mark Lopez

Join us for First Friday in Louisville, featuring Mark Lopez

Alpenglow

920 Main Street
8.4.2023, 6-9pm

Meet Mark

“My paintings draw on moments which transcend reality; whether spiritually, emotionally, or physically. Through modern dreamscapes and a touch of surrealism, I explore the unity between dreams, nature, and the human form. My work reflects a deep love for Rocky Mountain adventure, international travel, and explorations of the unknown. It also serves as a diary of intense experience, weaving a patchwork between reality and the sub-conscious.”

Learn more about Mark in our Q+A!

What are you working on right now?

I am working on a series of winter themed oil paintings and illustrations.

What do you do outside of work?

Having lived in Colorado for 15 years, I enjoy backcountry skiing, hiking, mountain biking, and climbing the summits (finished the 14ers in 2017, Kilimanjaro plans for 2024). I also love travel, rollercoasters, and concerts.

Who/What are your biggest influences?

Artistically I’m influenced by Rene Magritte, Rob Gonsalves, Antoni Gaudi, Artem Chebokha, and the photography of Jimmy Chin. Also, studying abroad in Rome, traveling, and outdoor adventure has had a profound impact on my work.

If you had a choice between two superpowers, being invisible or flying, which would you choose?

Flying for sure, so I could visit remote corners of the earth and visit family and friends scattered across the country whenever possible.

What is the best piece of advice that you have ever received?

I recently watched a Ted Talk by Dr Mary Neal, who said that “If you recognize that there really is something more (beyond this life on earth), then today really is something more. It is the key to living today in a continued sense of true joy

Get in touch with Mark Lopez

Website: https://www.marklopezdesign.com/painting.php

Instagram: https://www.instagram.com/marklopezdesign/

Facebook: https://www.facebook.com/markdlopezart

If you are a local artist/crafter/maker/indie business owner and would like to be featured on our blog, please fill out this form or contact Ashley at ashley@westandmainhomes.com with questions...we can't wait to learn all about you!

Just Listed: Enjoy the Colorado lifestyle in this 2-story home situated on an incredible lot in Wildgrass!

Enjoy the Colorado lifestyle in this 2-story home situated on an incredible lot in Wildgrass!

One of Broomfield's most prestigious pool communities with endless trails and mountain views at every turn. A private covered patio welcomes you to the home & hints at the endless outdoor living this home offers. Enter to find wood floors throughout the main level starting with the dining room at the entry. Fully updated eat-in kitchen with white 42" cabinets, stainless farmhouse sink, pantry, quartz counters and extended island offering great bar seating. Stepping out to the backyard from the kitchen, enjoy the open space view from a private patio with built-in fireplace with dedicated gas line and spacious fenced yard that is hard to find in Wildgrass. Back inside, the floor plan flows from the bright kitchen to the spacious family room with updated fireplace hearth, mantel, and built-ins. Off the family room is a main level bedroom with full ensuite bath that could double as a great office space. The main level offers a guest half bath and mudroom with laundry hook-ups off the over-sized 2-car garage. Upstairs you'll be greeted by a loft space with built-in desk providing additional living space and access to a 2nd level balcony off the front of the home with beautiful mountain views. Each of the bedrooms on the 2nd story are situated on their own ends of the home offering incredible privacy for all. The 2 upstairs secondary bedrooms share a full bathroom with double sinks. The primary bedroom offers open space views, vaulted ceiling, a 5-piece ensuite bathroom, and a walk-in closet. LVP floors flow throughout the 2nd level of the home. A full unfinished basement is ready to store all your things, use for exercise space, or finish for your future needs! This is a true gem that is ready for you to call home!

Listed by Christina Surprenant for West + Main Homes. Please contact Christina for current pricing + availability.

 

Have questions?
West + Main Homes
(405) 652-6635
hello@westandmain.com

Presented by:
Christina Surprenant
720-217-7835
cmhomesteam@gmail.com

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Just Listed: Updated Beautiful Bi-level Home on Large Lot!

Move in ready under $500,000!

This beautiful bi-level home has been recently updated, and sits on a large lot, down the street from Coronado Hills Elementary School. A short drive to downtown or DIA. Close to 1-25, HWY 36th and 1-76. Plenty of additional parking (including space for an RV), this home is ready for all of your toys. Has a non-conforming bedroom downstairs being used as an office. No HOA, and unincorporated Adams county, meaning lower taxes! Hurry and schedule your showing quickly, this one won't last!

Listed by Tenae Irey for West + Main Homes. Please contact Tenae for current pricing + availability.

 

Have questions?
West + Main Homes
(405) 652-6635
hello@westandmain.com

Presented by:
Tenae Irey
720-329-8071
tenae.irey@westandmain.com

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