Home Buying Doesn't Have to Be Hard

It’s just the biggest financial decision of most people’s lives. No pressure!

If you have your heart set on becoming a homeowner, you should be able to answer these questions before you start making offers.

What Down Payment Can I Afford?

If your current savings can cover 20% of the total price of a home, you are in great shape! Put down 20% and you can avoid private mortgage insurance (PMI), potentially saving hundreds on your monthly payments. PMI helps protect lenders in case you default on your loan, and it’s an extra expense you’d rather not pay.

How Much Should I Borrow?

If you put down 20%, you’ll have 80% of the total price left to pay, plus interest of course. You can work with a lender like Mortgage Solutions, LLC* to see if you can get preapproved for a specific loan amount. This not only helps you understand what you could realistically afford; you’ll give the sellers and their agent confidence in the financing behind your offer.

What Costs Come with a Home?

Here’s a scenario. You find the perfect place. The seller accepts your offer and your financing is approved! What happens next?

Aside from the down payment on your home loan, you may have closing costs, such as, but not limited to, the following: 

• Origination fees
• Appraisal fees
• Title insurance
• Title fees
• Home inspection fees
• Prepaid taxes and insurance
• Escrow fees
• Recording fees
• Survey fees
• Credit report fees

How Does Homeownership Compare to Renting?

Are you trying to make the jump from a lease to a mortgage? As a renter, you won’t pay property taxes or renovation costs. You’re also able to relocate with relative ease. With a mortgage, you can build equity, make updates to the home and potentially profit if the value increases. Ultimately, the right decision takes timing, finances and lifestyle into account.

Your Local Lender

Mortgage Solutions is based in metro St. Louis, and their team is ready to assist you with any questions on your home buying journey.

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Mortgage Solutions, LLC—NMLS #277481 is a wholly owned subsidiary of Members Resource LLC, a Credit Union Service Organization, a wholly owned subsidiary of Vantage Credit Union. Not all loan products are available in all states. Subject to credit approval. Equal Housing Lender