Tag Archives: mortgages

Banking With Buch

I still remember buying my first home and the feeling I had in knowing it was mine. You wanted to make it look the best you could, decorate it with all the things you loved, and personalize it to reflect your personality. Besides that sense of pride in ownership, it was also a good investment. By taking good care of your home, paying the taxes and mortgage payment, your investment value would grow, and in return, be worth more than when you purchased it.

Today, I am helping others in buying their own home and I get to re-experience those great feelings over and over again. It is exciting to be a part of this process for my customers and see those same emotions on their face. There are many things different in the process of getting a mortgage, but that end feeling of home ownership is the same. That is what I like most in my job.

If you are just thinking of buying a home, here are a few suggestions:

  • Check your credit score. You will want to have it in the range of 660 or above. If you need suggestions on how to raise your credit score, stop in and chat with me.
  • Save a little each month into a savings account. Not only will this help you build up a down payment, but it will also help you budget with cash flow and get used to a possible higher mortgage payment.
  • Don’t go out and make a big purchase prior to house shopping. Sometimes a purchase of a new vehicle will cause problems in qualifying for a house payment or limit you to a lower price range of home.
  • Employment strength is also important. Hopping from job to job allows for gaps of income and makes it harder to qualify for a mortgage.
  • Stop in and get more information. Sometimes there are special loan programs that can help you out financially. Information is free and we will take the time to answer all your questions.

Buying a home is one of the largest investments that most people will make in their lifetime. Enjoy your experience as much as you enjoy your new home. One of my favorite quotes is “It’s not about the destination. It’s about the journey to get there.”

 

– Sue Buch, VP Real Estate Lending

Renting v. Buying a Home

Mortgage

Jumping into the ring of homeownership is an exciting milestone! There are many ways owning a home can impact you and your family. How do you know when to rent and when to make the move to purchasing your home? Iowa State Bank & Trust is here to help with our handy guide to the pros and cons of renting or owning a home.

Renting

Cons:

  1. No wealth creation. As your payments go directly to your landlord and not the specific property, you are unable to build equity and reap the return on investments from the home’s growing value.
  2. No tax benefits. While homeowners can deduct property taxes and mortgage interest payments from their federal income tax, renters can’t claim deductions for housing costs.
  3. Dependent on the landlord. For everything ranging from utilities, to paint, to the rent dollars themselves, your landlord makes the majority of the decisions when it comes to renting a home. Depending on your lease, your landlord can increase the rent increase each year, or month!

Pros:

  1. Accommodates flexible lifestyles. If you travel frequently for work, leisure, or medical care, you may not have the time or availability to take care of a home. Renting allows an affordable accommodation without any hassle of renovations or repairs.
  2. Freedom in allocating finances. For renters, expenses such as mortgage insurance, real estate taxes, and home maintenance costs, can instead be funneled into savings, stocks or discretionary funds after the monthly rent and utilities are paid.
  3. Reduced insurance costs. Apart from renters insurance that covers the interior of a home, costly homeowners insurance and unexpected repairs belongs to the landlord, not the tenant.

Buying

Cons:

  1. Unexpected costs. Leaky roofs, backed-up pipes, and cracking foundations create thousands of dollars worth of unplanned repairs that stretch your budget to accommodate.
  2. You’re locked in. Once you sign on the dotted line the house is yours, and so are the payments.
  3. Fluctuating home value. Despite your best efforts, your home can become less marketable based on circumstances out of your control. A declining neighborhood, housing surplus, or unstable market can decrease the value of your home despite well done renovations.

Pros:

  1. Fixed monthly payments. Homeowners with fixed-rate mortgages can trust that their mortgage payment will stay consistent each month, enabling the creation of a stable monthly budget.
  2. Financial gains. From tax credits to equity building, home ownership offers buyers a number of monetary perks and freedoms they wouldn’t receive as tenants.
  3. Freedom in expression. A kitchen remodel, a four-season porch addition, and other decorative transformations are all up to a homeowner’s discretion with no strings attached to a lease agreement.

Still on the fence? Our experts at Iowa State Bank & Trust can sit down with you to help make a guided decision that suits both your lifestyle and your financials. Call and set up an appointment with us today!

Home Renovations with HELOC

Home Renovations with HELOC

With warm weather approaching spring is the ideal time to shake off the dust and get your house back into shape! Get started on your next home renovation with a strategic Home Equity Line of Credit from Iowa State Bank & Trust. Our custom financing allows you withdraw only the funds you need along the course of your future project. Inspiration can be found everywhere when updating common areas such as the kitchen, bathrooms, basement, or outdoor living area. See what these average home renovations cost with this handy guide courtesy of Iowa State Bank & Trust.

Kitchen Remodel: Creating your ideal culinary environment is more than just choosing cabinets and granite. With all the updates and finishing work, a typical Midwestern kitchen remodel can cost around $15,000 to complete. Carefully crafting the heart of your home takes concentrated decision making and long term planning. Consider updating your kitchen appliances to save you time and energy while preparing future meals. You may want to refinish or replace worn out flooring to match the new feel of your fresh remodel.

Bathroom Remodel: Giving your common space a much needed facelift can help you add value to your home. With updates as simple as new hardware and a tasteful backsplash you can bring some timeless style to a functional space. When undertaking a full renovation, features like a walk-in shower or a double vanity can bring a bold statement to the room. The average bathroom remodel in Iowa typically runs under $10,000 for a completely revamped space.

New Deck: Building a fun outdoor patio or deck can open up the area for countless fun family activities. Costing around $6000 for the average Midwestern deck, you can complete this exciting renovation in time and under budget. Spice up your new construction with added rails to hold beverages or food during grill outs and get-togethers.

Finishing a Basement: Depending on your foundation and other structural issues, most basement renovations center on adding dry wall, placing new flooring, and waterproofing the entirety of the room. Typically costing under $25,000, a finished basement can serve as additional space for an office or play room, increasing the livable square footage of your home.

There are endless projects to begin your spring to-do list this season. Let Iowa State Bank & Trust help you get started on your next home renovation with a tailored Home Equity Line of Credit. Speak with one of our helpful lenders to get started today!