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| Investment
Strategies |
| You
want to buy a home, and yet you haven't saved enough
money. You aren't alone. Take heart - with careful planning,
sensible investing, and some time, you have the potential
to save the money you need so that you can become a
homeowner. |
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Determine
Your Time Frame
Do you want to buy a home within the next five years
or the next 10? Your time frame is a crucial factor
in your investment strategy. Read about some options
below, and consider getting in touch with a Wells Fargo
Financial Consultant for professional guidance. |
Determine
Your Savings Goal
Buying and owning a house includes: |
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Down payment. This can be as low as
3%, or even nothing. Read "Low Down Payment Options"
to find out more. |
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Monthly payments. Your monthly interest
payment will depend on your down payment and the type
of loan you get. Get an estimate with our Monthly Payments
Calculator. |
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Closing costs. Closing costs can average
between 2% and 7% of the price of your home. Our Home
Loan Workbench ® can help you with an estimate. |
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Home insurance and property taxes.
These will vary based on your home and where you live.
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Moving costs. Even if you do it yourself,
moving can be expensive. Packing supplies, utility hook-ups,
storage, and travel all add up. |
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One-time big-ticket items. You may
need to buy appliances, install new carpet, or repaint.
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Maintenance costs. Make sure you have
something left over for emergency repairs and potentially
higher utility bills. |
Pay
Yourself First
Whether you're saving for the short- or long-term, you
should put money away on a regular basis - for example,
every two weeks. |
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Start today, and make saving or investing a
habit. The sooner you start, the sooner you
become a homeowner. |
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Write that first check to your savings or investment
account when you pay your monthly bills. You'll
be surprised how quickly this money could grow. |
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Set up an automatic savings plan. Money
is automatically deducted from your salary or checking
account and placed into an account that you manage.
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Retirement accounts, like your company's 401(k) plan,
may allow you to borrow a portion of your vested assets
- and spread the loan repayments over several years.
This can be a boon for first-time homebuyers. |
| For
A Short Time Frame |
Short-term
savings accounts
For short-term savings it's a good idea to put your
money in interest-earning accounts that are eligible
for FDIC insurance, so your savings are secure. |
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Time Accounts.
Also known as Certificates of Deposit, Time Accounts
earn higher interest rates than regular savings accounts.
You get a guaranteed rate by leaving your money in for
a fixed period of time. |
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Savings Accounts.
It's important to have liquid savings for the day-to-day
expenses of owning a home. Wells Fargo offers a variety,
from basic savings accounts to higher-interest-earning
money market accounts. |
Consider
withdrawing from IRAs and 401(k) plans.
Did you know that you might be able to get money from
your tax-deferred and retirement accounts to buy your
first home? These two possibilities can help you with
your down payment: |
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You can withdraw up to $10,000 from your IRA,
over the course of your lifetime, to purchase a home
if you're a first-time homebuyer.
Keep in mind that you still pay taxes on the withdrawal,
but you aren't hit with the 10% penalty imposed by the
IRS as long as you meet certain restrictions. |
| Regulatory
restrictions may apply. Please consult your tax advisor
before withdrawing or borrowing funds from your IRA
or retirement accounts. |
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| Long-Term
Investing |
Invest
wisely.
History has shown that common stocks have provided higher
returns, over time, than any other financial instrument
- but they also have a higher level of risk. You should
try not to focus on the day-to-day fluctuations, but
look at how the stock market has performed, over time.
Keep in mind that past performance is no guarantee of
future results. Make sure that you feel comfortable
with the level of risk, and a long-term investment goal.
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Consider
investing in a variety of different asset classes, such
as stocks and bonds.
This way, if one of them performs poorly, you may avoid
the pitfall of having put all your eggs into one basket.
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MidAmerican
Home Services Mortgage products and services.
Whether you want to invest on your own or with the guidance
of a professional, MidAmerican Home Services Mortgage
has long-term investing options to help you save for
your future home. |
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MidAmerican Home Services Mortgage has a broad array of products
that can fit the needs of almost any consumer.
Fixed-rate and adjustable-rate mortgages, VA, FHA, no down
payment and much, much more!
We explain each product clearly and help you decide which
one is the right one for you.
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| Click
the button to check out our great line of products! |
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Click
the button to apply
online for a home mortgage
from MidAmerican Home Services Mortgage.
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| Questions?
Comments?
Use this quick, easy way
to contact us or call us at
1-800-247-2430 |
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| Monday-Friday
8:00AM-5:00PM CST |
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Equal Housing Lender