Since 1963, home prices have experienced a dramatic 23-fold increase, translating to an average annual growth rate of approximately 10.4%. According to the U.S. Census Bureau and the Department of Housing and Urban Development, the median home price in the United States in April 2024 was $433,500, while the average sales price was $505,700. The median listing price per square foot is currently $224, a significant rise from $144 in July 2018, marking a 56% increase over the past five years. The typical home size in the U.S. is 2,014 square feet. In the Midwest, home prices vary, with Wisconsin averaging $288,596, Illinois at $254,128, Michigan at $233,019, Indiana at $232,390, Ohio at $220,542, and Minnesota at $336,279.

Sales of new single-family houses in April 2024 were at a seasonally adjusted annual rate of 634,000, which is 4.7 percent below the revised March rate of 665,000 and 7.7 percent below the April 2023 estimate of 687,000. This data highlights the ongoing trends in the housing market and underscores the importance of understanding current market conditions when making decisions about homeownership. An expert lender can help you navigate these complexities.

Owning a home provides numerous benefits, including the ability to build equity over time, which can be a valuable financial asset. Homeowners can also take advantage of several tax deductions, such as mortgage interest and property taxes, which can significantly reduce taxable income. Furthermore, homeownership offers the freedom to personalize and improve your property, allowing you to create a living space that truly reflects your tastes and needs.

Real estate often appreciates in value over time, providing potential long-term financial gains. Homeownership also brings a greater sense of stability and security, as you have control over your living environment and are not subject to a landlord’s rules. Additionally, owning a home fosters a sense of community and engagement, allowing you to build relationships with neighbors and participate in local events. These factors combine to make homeownership a significant investment both financially and personally. Please consult with your tax advisor.

Choosing the right lender is crucial in your journey to homeownership. The right lender can make the process smoother, help you get the best rates, and provide the support you need. Here are some key factors to consider when selecting a lender:

1. Research and Compare: Start by researching different lenders and comparing their offerings. Look for lenders with good reputations, strong customer reviews, and a range of mortgage products that suit your needs.
2. Interest Rates and Fees: Compare interest rates and fees from multiple lenders. Even a small difference in interest rates can save you thousands of dollars over the life of your loan. Understand the fees involved, such as origination fees, application fees, and closing costs.
3. Loan Programs: Different lenders offer traditional and portfolio loan programs. Ensure the lender you choose offers the specific type of loan you need, whether it’s a conventional loan, FHA loan, VA loan or portfolio loans that fall outside the conventional loan criteria.
4. Pre-Approval Process: A good lender will help you get pre-approved for a mortgage. Pre-approval gives you a clear idea of how much you can afford and shows sellers that you are a serious buyer. The pre-approval process should be straightforward and transparent.
5. Customer Service: Excellent customer service is vital. You want a lender who is responsive, communicative, and willing to answer all your questions. A lender who prioritizes customer service will make the entire process much more pleasant.
6. Local Knowledge: A lender with local knowledge can be a great asset. They understand the local real estate market, can provide insights specific to your area, and have a broad industry network.
7. Referrals and Recommendations: Ask friends, family, and real estate agents for recommendations. Personal referrals can provide valuable insights into a lender’s reliability and service quality.