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5 common mistakes when deciding to buy vs. rent

Assuming your rent will stay the same.

One thing renters often do when considering a home purchase is compare their current rent to the potential mortgage payment of a home they could buy. What they often forget is that rents almost always increase over time, while a mortgage’s principle and interest stay the same.

Forgetting to calculate principle pay down.

A second thing renters can forget to calculate is that a portion of their payment goes towards paying down the principle balance on their loan. Each payment brings you one step closer to owning that home free and clear and also can build equity that you can potentially tap in to by selling or applying for a home equity line of credit.

Forgetting to calculate appreciation.

That house you own may also appreciate in value. Every dollar in value that your home goes up in value is an extra dollar of net worth on your balance sheet. Appreciation on a home, typically your largest asset, can be the single biggest wealth building tool available to most people.

Calculating cost to sell.

To piggyback on number 4, there is also a cost to sell. This is very important to remember because a typical agent compensation on a sale is around 6%. If you don’t stay in the home long enough to build substantial equity, a quick sale may end up losing you money.

Calculating upfront costs.

When determining whether to buy or rent it is also very important to analyze how much money it is going to cost you out of pocket. What down payment options are available to me? What are closing costs going to be? These are questions you should ask your loan expert to get a feeling for your upfront investment. Then you can compare this cost with how long you plan on staying in the house. It may take several years to recoup your upfront costs with appreciation or principle pay down. So, if you plan on only keeping the house for a short period of time, it may not be in your best financial interest to buy.

7 things you should never do before buying a house

Buy a car before speaking with a mortgage loan officer.

Buying large personal items on credit can affect your debt to income ratio, or the amount of monthly debt payments that you have relative to your monthly inflow of cash. This is one of the largest determining factors for the amount of home you will qualify for, or if you will qualify at all. Always consult your mortgage professional before making a large purchase on credit.

Use cash to pay off debt before speaking with a mortgage loan officer.

It may seem like common sense to pay off a debt to improve your credit score. However, that’s not always the case. Sometimes your money can be better used to pay for down payment, closing costs, or just keep in your pocket. Always consult with your mortgage professional before burning through that cash!

Put an offer on a house without having a full preapproval.

While you can back out of a home purchase in some instances, there is usually a financial risk to doing so. Deposits on the home may not be refunded and you may have sunk cost in inspections and appraisals. Always make sure to have a full preapproval before you offer on a home so you and the seller are confident the deal will go through without a hitch!

Wait until the last minute to get a preapproval.

Getting back to the last point, most sellers will require a preapproval letter with their offer to ensure they are working with a qualified buyer. In today’s competitive market, if the seller has to wait for you to contact a mortgage company to obtain a preapproval letter, they may move on and accept another offer. Always be prepared before you look at houses with your preapproval.

Assume that foreclosures are the best deal.

There is a common misconception that a foreclosure is a great deal. Just like any other home, there are foreclosures that are good deals and foreclosures that are bad deals. Work with a licensed real estate agent who has access to new construction, existing homes, and foreclosures so they can point out the pros and cons of each.

Assume that forgoing a buyer’s agent will save you money.

Buyer’s agents work for the buyer but are paid by the seller. Often times you will hear of someone enticing you with a “deal” if you don’t use a realtor to represent your purchase. Often times this doesn’t work out in the buyer’s best interest. Always vet out your options to be represented in a home purchase transaction..

Change jobs before speaking with your mortgage loan officer.

Back to that debt to income ratio from number 1, nothing is a bigger killer of a deal than having a change of income that can’t be counted towards a home loan. Always make sure to consult with your loan expert about how changing jobs will affect your approvability before making a decision.

Testimonials

As a first time home buyer, Paul and his team made everything very easy from start to finish. They answered any questions I had promptly and thoroughly. I would definitely work with them again in the future and recommend them to anybody in the market to purchase a home.

Colin P.


The support and encouragement whenever the process felt a little stressful helped us move right through to our closing date. Having Luke there with us as we signed the papers was great!! Luke and Paul were wonderful to work with. Thank you so much for all your support!! You both are AWESOME!!

John R.


The Staff and support team members were outstanding. I have bought many homes and this by far was the best loan experience. I never heard "you can't" one time but had solutions for all steps in the loan process. Your software was outstanding. I will recommend you and your company to anyone. Thanks again

Lanny J.

Reviews

  • Doreen Roub
    Doreen Roub
    21:38 27 May 20
    Andy, Kristina, Austin and the entire Dash team are true professionals! From beginning to end, this was the absolute... best experience and stress-free too! Website portal is easy to navigate and upload documents. Everyone is available all the time and quickly respond to emails or questions over the phone. I felt confident we received the best rate and well informed with the entire process. Thank you again!read more
    Claire Urban
    Claire Urban
    12:46 07 May 20
    Dash Home Loans went above and beyond when it came to helping us buy our home. They guided us through the process and... were always available to address any questions or concerns. Highly recommend them !read more
    Allison Follini
    Allison Follini
    21:26 22 Apr 20
    Dash Home Loans was professional and a pleasure to work with. Everyone on the team made my experience as smooth as... possible even with a very short closing time frame. The portal was user friendly and made it easy for me to retrieve documents I had signed, and clearly see any outstanding action items. Paul and Courtney made the process easy and I never felt in the dark about anything. They were always only a phone call away and promptly answered any questions I had. Thank you!read more
    Manuel Lopez
    Manuel Lopez
    12:22 19 Apr 20
    Dash Home Loans team worked closely with our family to ensure a smooth loan process experience. Their communication is... clear and concise. They have quick response times and make themselves available to you when you need answers to questions. During the COVID -19 volatile market they removed all fears and completed our loan process quickly and efficiently. They exceeded our expectations!read more
    Ericka
    Ericka
    20:15 01 Apr 20
    A+ customer service, timely responses and walking with you throughout the whole process. A company needs to be praised... for this. This is my second great experience with Dash home loans. It just keeps getting better with them. Excited about the third time using them as my lender in the future already!!!read more
    Jordan Hill
    Jordan Hill
    16:09 01 Apr 20
    Dash Home Loans is hands down the best. As a first time home buyer it can all be so stressful, even more so if you are... young and don’t exactly know what to expect or do. Courtney was exceptionally helpful and I can’t think thank her enough. She was always there to answer all of my questions (I had plenty) and was always so helpful. Everything was done in a timely manner and we were able to close when we were expected to. I will definitely be working with Dash Home Loans again in the future and highly recommend to anyone!read more
    Katie McAlister
    Katie McAlister
    09:10 13 Mar 20
    Great experience!! Very attentive to every question and email! Kept me up to date on the whole process! Thanks Team... Dash!!read more
    Carlos ruiz
    Carlos ruiz
    17:27 04 Mar 20
    This is me second time purchasing a home and this loan company was beyond great, we closed with no issues in less than... 30 days . They have a very professional and outstanding team , great on comunicación and on making the deal go so smooth that I will use them again and recommend to anybody !!!read more
    Austin Steele
    Austin Steele
    16:41 18 Feb 20
    Dash was very helpful through this whole process. They kept me up to date and informed on what moves need to be made... next. The whole team makes you feel like one of them and we are working together. Really enjoyed my first time home buyer experience with them!!read more
    Amanda Eberhardt
    Amanda Eberhardt
    20:08 17 Feb 20
    Great team! I worked with several people from Dash loans and they were all extremely helpful during the process of the... sale and buy of my new home. Would highly recommend them, especially to those who have a lot of questions!read more
    Amanda von der Luft
    Amanda von der Luft
    20:25 14 Jan 20
    Everyone from Dash that we dealt with through our home buying process was extremely helpful and pleasant to communicate... with! As first time home buyers, they made the process extremely easy and were always able to answer any questions that we had. Special shout out to Amy - she's the best!read more
    Crystal Nickens
    Crystal Nickens
    17:04 31 Dec 19
    The team was great and kept me up to date on everything going on. They was very helpful and answered all my questions.... I would recommend them to family and friends. It was a great experienceread more
    Brett Tompkins
    Brett Tompkins
    16:12 31 Dec 19
    Great service with excellent support. They treated us like people not a number on some list. Thank you for making my... families dream home come true. :)read more
    Kristie Baquero
    Kristie Baquero
    16:17 19 Nov 19
    Friendly, respectful and on top of everything. I’ve bought two houses and chose them for both. I specifically worked... with Amy this time and she is incredible. I especially appreciated the communication that I received from the entire team - quick and always friendly. When you’re going through such a stressful situation (buying a home), it’s important to have a team that understands your worries and is there for you along the way. I’d work with them every time!read more
    Becca Mangini
    Becca Mangini
    14:26 08 Nov 19
    Paul, Amy and the whole Dash team have great communication, a wealth of knowledge and “no quit” in them! Thank you... so much for all your hard work securing me. Great home loan at a fabulous rate.read more
    Haydee Hidalgo
    Haydee Hidalgo
    02:34 03 Nov 19
    Steve was extremely helpful, patient and above all knowledgeable. He helped me along the entire process of getting my... mortgage finalized and approved. Thank you so much for all of your help.read more
    April Wiles
    April Wiles
    17:42 23 Oct 19
    Could not ask for a better experience. Easy to talk to and great to work with. They made the process less stressful and... handled everything on their end in a timely manner.read more
    JJ
    JJ
    19:17 15 Oct 19
    These guys are not what they seem. They gave me a preapproval letter only to find out they had not actually preapproved... me, I was only pre-qualified. They made promises that they could not keep. Luckily I was able to find a lender that could close me on time. No credibility at this shop.read more
    Sandi Creech
    Sandi Creech
    14:06 15 Oct 19
    I highly recommend Paul and Logan and the team at PRMI!!!! They totally exceeded my expectations. I closed on my house... over a week early. The sellers were VERY surprised at how smooth and quick the process took. They told me they had purchased homes in the past and never closed on time and had lots of stress dealing with the process of their previous purchases. This is the first time I’ve purchased a home and I am incredibly thankful to have had such a wonderful experience doing so. Paul and Logan are outstanding to work with. I can not thank them enough!!!!!! THANK YOU PRMI TEAM!!!read more
    Bates Jernigan
    Bates Jernigan
    13:33 14 Sep 19
    Paul and Amy were great! Very responsive and helpful through the whole process!
    Jacob Hilt
    Jacob Hilt
    16:51 12 Aug 19
    Paul and his team stepped up the bar for lending. When I approached them, I was in the middle of a purchase and the... lender I was using dropped the ball and left me out to dry. Not only did Paul and Logan get me approved and closed in just under 3 weeks, they provided customer service that I have never seen in any industry. They were incredibly informative, made the process easy to understand, and made me feel like part of the family.I highly recommend this team to anyone looking to purchase.read more
    Julie Prestwood
    Julie Prestwood
    15:53 02 Aug 19
    Paul and his team went above and beyond to help us close on time. I personally worked with Luke and he was very prompt... on responding. 10/10 will recommend.read more
    Mark Poole
    Mark Poole
    20:51 15 Jul 19
    Very professional group and great response time. They make it easy to process all info needed and everything is... organized.Would recommend them to anyone buying a homeread more
    kim jones
    kim jones
    16:25 03 Jul 19
    I was out of state buyer. A home i had previously been outbid on came back on the market - problem was i had to close... within 30 days right before holiday. Paul and his team went above and beyond to make sure i had all the information and instructions i needed timely to make sure everything was in order. My situation was unique but Paul handled it like it was routine no problem. Highly recommendread more
    Jesse Underland
    Jesse Underland
    22:07 30 Jun 19
    I recently purchased my 6th home and used Primary Residential Mortgage, Inc. as my mortgage company. Paul Carini and... Logan Thompson, the customer facing individuals assigned to my account, provided a communications platform that eliminated any stress or worry on my part. Of all the home purchases this was by far the best and most smooth experience I have had. Both Paul and Logan were always available to talk to me If I had any questions regarding the processes or documentation. I never had a single issue getting in touch with them regardless of the day or time. They continuously kept me abreast of each step as we moved toward settlement. I have no intention of buying another house but if I did, they would be the people that I reached out to to hire as my mortgage brokers.read more
    Rob
    Rob
    16:32 04 Jun 19
    The team at Primary Residential Mortgage were awesome to work with. We had a timeline to get the loan finalized and... they came through. I would recommend them to anyone!read more
    Jon Kaplan
    Jon Kaplan
    17:43 24 May 19
    Had a great experience working with Paul and Logan. They were quick to respond to my questions and were very patient in... explaining certain aspects of the mortgage process.read more
    Christina Wray
    Christina Wray
    10:22 01 May 19
    These guys are great to work with, always sending friendly reminders, making sure nothing slips through the cracks. I... highly recommend them!read more
    Mandy Idol
    Mandy Idol
    19:51 25 Mar 19
    Paul and his team exceeded expectations and communicated throughout the entire process. They made the home buying... experience enjoyable! I highly recommend PRMI to anyone considering a mortgage.read more
    April Villines
    April Villines
    13:15 12 Jan 19
    Courtney and her team were the epitome of professionalism and efficiency. She is so personable that you feel like you... are her only client. As a Real Estate professional myself, it is always refreshing to work with a Lender that is fully committed to her clients and their best interest. She had outside-the-box ideas to save my clients money and presenting those ideas made her the obvious choice. I look forward to recommending her to others!read more
    Next Reviews
  • Primary Residential Mortgage
    5.0
    Based on 1 Reviews
    Jessica T.
    Jessica T.
    2019-06-06 13:44:26
    Paul and Amy were amazing! Great to work with, very responsive; helped us with questions at anytime of the day. We felt comfortable discussing personal...
  • Frequently asked questions

    1What is Dash Home Loans?
    Dash Home Loans is the local mortgage expert when you need it and the simple online mortgage application when you don’t. It’s one direct mortgage contact to simplify your purchase or refinance with a team of professionals helping them behind the scenes. It’s the best mortgage experience you’ll ever have at a price that you’ll feel good about. Put simply, it’s the Simplest, Fastest, and Most Guaranteed way to get a home loan.
    2Where did the concept come from?
    Since the invention of assembly line, companies have been cutting jobs into smaller and smaller ‘tasks’. While this works for automobiles and French fries, years of experience told us it didn’t work for lending. Too much information has to be passed from one entity to another, resulting in a losing game of operator. We removed the middle man from the mortgage process leaving just you and your mortgage expert with a 1 on 1 relationship. This results in more accountability, a streamlined process, and quicker, better results.
    3What is your home loan purchase guarantee?
    Something that sets us apart from other ‘online’ lenders is our expertise. Our most loyal clients know this about us and that is why they send their friends and family to us by way of referral. We wanted to show the world how confident we are that we are the most trusted resource in home lending, so we put our money where our mouth is. We guarantee both the buyer and seller will be made whole if we can’t come through on our promise to lend.* No more worrying about wasted money on inspections or due diligence.
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