How to Not be House Poor

We’ve all heard the term “house poor,” but what does it truly mean? Being “house poor” refers to a situation where the majority of your income is consumed by housing expenses, limiting your financial freedom.

Picture yourself basking in the glow of your new home, sipping coffee in that beautiful kitchen. Sounds dreamy, right? Now, imagine your bank account gasping for air as you struggle to keep up with mortgage payments, utility bills, and those surprise repair costs. This scenario is surprisingly common, and many homeowners find themselves in it.

A common mistake among first-time homebuyers is overextending themselves with homeownership.

What Makes Us Different

In 2024, 47% of SNMC borrowers were first-time homebuyers, which is almost twice the industry average of 24%, as reported by NAR. We prioritize building trust with you by taking the time to educate you about the various options available. Our goal is to help you understand what’s best for your unique financial situation, ensuring you can confidently navigate your homeownership journey and afford your dream home.

Tips to Avoid the House Poor Trap

Understand Your Debt-to-Income Ratio: Keep your debt-to-income ratio below 40%. This ratio is crucial for lenders and helps you assess your financial health. If it’s above 40%, consider reducing your debts before buying a home.
Start with a Solid Budget: Create a detailed budget that includes all housing costs, such as mortgage payments, property taxes, utilities, and maintenance. Ensure that your mortgage payment is less than 30% of your income to maintain financial comfort.
Explore Down Payment Options: Don’t feel pressured to make a 20% down payment. Many lenders offer options as low as 0%. However, if you can afford a larger down payment, it may lead to better interest rates and lower monthly payments.
Maintain Good Credit Health: A strong credit score is vital for securing favorable mortgage terms. Regularly check your credit report for errors and work on improving your score before applying for a mortgage.
Tackle That Debt: Before making another big move, chip away at any current debts. Not only will it lighten your load, but it can also improve your credit score. Lenders love a high score, which could mean a lower interest rate.

Try our free affordability mortgage calculator.

What If You’re Already House Poor?

Identify and Reduce Unnecessary Monthly Expenses: Review your monthly expenses to identify small, unnecessary costs that can be trimmed, such as daily coffee runs or unused subscriptions. Even cutting back on just a few items can free up significant cash, allowing you to allocate funds toward your mortgage or savings.
Evaluate Mortgage Refinancing Options: If interest rates have dropped since you secured your mortgage, refinancing could lower your monthly payments and save you money in the long run. By refinancing, you may also be able to eliminate PMI if you’ve built enough equity in your home, further easing your financial burden.
Explore the Possibility of a Home Equity Loan: If you have built up equity in your home, consider a home equity loan or line of credit. This can provide you with additional funds to manage expenses or consolidate debt.
Pay Down Your Mortgage with Extra Cash: Throwing extra cash at your mortgage principal can significantly reduce the amount of interest you pay over time, leading to greater financial freedom. By paying down your mortgage faster, you can also eliminate private mortgage insurance (PMI) sooner, saving you even more money each month. Reach out to one of our loan officers to see if you can remove PMI.

Contact us to explore your options.

Finding Financial Comfort

Managing your home finances doesn’t need to be an uphill battle. Whether it’s throwing extra cash at your mortgage after scoring an unexpected bonus, there’s always a way back to financial comfort. You don’t necessarily have to become a minimalist or sacrifice all comforts; just be smart and stay flexible. Make it a habit to check your bank statements each month or even each week! You’ll be amazed at how quickly those small purchases add up.

Start Today

A knowledgeable Loan Officer will guide you through the essential steps to prepare for your home purchase or help you navigate your current situation. Starting these conversations now can set you on the path to achieving the stability you desire. Focus on establishing realistic and attainable goals for your homeownership dreams.

Find a Loan Pro Near You

Building Generational Wealth: Why Homeownership Matters for the Future

In today’s fast-paced world, where apps can deliver dinner in minutes and markets swing by the hour, one investment still stands the test of time:owning a home. While the concept of “generational wealth” might sound lofty or out of reach, the truth is this — every mortgage payment you make, every improvement you add, and every year you hold onto your home… you’re building it.

Whether you’re considering buying your first home or you already have a keychain with your last name on the front door, here’s why homeownership is one of the most powerful tools for creating lasting wealth for your family.

What Is Generational Wealth, Anyway?

Generational wealth is the kind of financial advantage that gets passed down — not just enjoyed in your lifetime, but available to your children, and their children too. This isn’t just about money in a bank account. It can be property, investments, or any asset that grows over time. And real estate is one of the most accessible ways for everyday families to build it.

Why Homeownership Creates Wealth

1. Equity Grows While You Sleep

Every month you make a mortgage payment, a portion goes toward building equity — your ownership stake in the home. Over the years, that equity grows, especially as home values rise. Think of it this way: rent disappears. Equity stays.

2. Value Appreciation Over Time

Homes typically increase in value over the long haul. Even through market dips, history shows that real estate tends to recover and grow stronger — especially when held over decades. That increase in value becomes real wealth you can access through refinancing, selling, or when you pass on.

3. Leverage & Opportunity

With one down payment, you gain control over a large asset. That’s financial leverage — your 10–20% down gives you 100% of the appreciation. Few other investments offer that kind of return.

Real Stories: How a Home Becomes a Legacy

It’s not just about dollars and cents. A home becomes part of your family story:

A couple buys a starter home and upgrades over the years, using the equity to help pay for their child’s college.
A grandparent passes down a mortgage-free home, giving their children a head start many never had.
A family builds wealth by investing in small improvements over time, then uses profits from a home sale to fund retirement or buy a second property.

This is how wealth gets built — quietly, steadily, one generation at a time.

Already a Homeowner? Here’s What You’re Doing Right

If you already own a home, congratulations — you’ve made one of the smartest financial decisions possible. Now, think long-term:

Can you refinance to a better rate or shorten your term?
Would a few home improvements raise your home’s value?
Have you explored turning your home into a rental in the future?

Even if you’re years away from selling or passing it down, the seeds of legacy are already planted.

First-Time Buyer? This Is Your Doorway

For first-time buyers, the idea of “generational wealth” might feel abstract. But here’s what’s real:

Homeownership puts you in control.
It sets a foundation for long-term stability.
And it creates options for your future — whether it’s growing your family, building passive income, or simply having a space that’s truly yours.

Ready to Start or Grow?

Whether you’re just stepping into the world of homeownership or looking to maximize the potential of your current home, know this: The best investment might be right under your roof. Talk to a trusted loan officer, explore your prequalification options, or check out tools like the SNapp Home App to manage the journey with ease. Your future — and your family’s — could begin with a front door key.

Looking to start or strengthen your homeownership journey?

Reach out to your loan officer today —to talk about your goals, your next steps, and the legacy you want to build. Don’t have a loan officer yet? Find one here.

The Real Truth About Homeownership: Why It’s Worth the Journey

As a mortgage lender, we’ve helped countless families achieve their dreams of homeownership. We understand that owning a home isn’t always a walk in the park, but the benefits far outweigh the challenges. Let’s talk about why homeownership remains one of the most powerful ways to build long-term wealth and stability.

Building Equity, Not Someone Else’s Wealth

Every mortgage payment you make is like paying yourself instead of your landlord. While renters help their landlords build wealth, homeowners gradually increase their own net worth through equity. It’s like having a automatic savings account that grows over time.

Tax Benefits That Make a Difference

Homeownership comes with significant tax advantages, including the opportunities to deduct mortgage interest and property taxes. These deductions can lead to substantial savings come tax season, putting more money back in your pocket.

Freedom to Create Your Space

Want to paint your walls hot pink? Plant a garden? Finally get that dog you’ve always wanted? As a homeowner, you don’t need to ask for permission. Your home truly becomes your castle, allowing you to customize your space to match your lifestyle and preferences.

Protection from Rising Housing Costs

While renters face annual increases in their monthly payments, homeowners with fixed-rate mortgages enjoy more stable housing costs. In today’s inflationary environment, this predictability is more valuable than ever.

Let’s Be Real: It’s Not Always Easy

Homeownership comes with its own share of challenges. From unexpected repairs to property maintenance, being a homeowner means being responsible for everything that goes wrong. That leaky faucet? It’s on you now. The AC that decides to quit in August? Another problem to solve.

But here’s the truth: these challenges are temporary, while the benefits of homeownership are long-lasting. Every obstacle you overcome as a homeowner is an investment in your future and your family’s stability.

The Long-Term Perspective

When you’re writing that monthly mortgage check or dealing with a home repair, remember that you’re playing the long game. Homeownership is about building generational wealth, creating stability for your family, and investing in your future.

While the path to homeownership might not always be easy, it remains one of the most reliable ways to build wealth and create the life you want. As a company who’s helped many people and families navigate this journey, we can tell you that most homeowners look back and say, “It was all worth it.”

Ready to start your homeownership journey? Reach out to your loan officer to talk about your options and create a plan that works for you. Don’t have a loan officer yet? Find one here.

Remember, the best investment in your future might be the roof over your head.

Who’s who in the mortgage process

Helpful Articles > First-time homebuyers

Who’s who in the mortgage process

Here is a list of some of the people you will become familiar with throughout the loan process. This should help you better understand what you can expect from each individual along your journey home.

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Appraiser

An individual who is licensed to estimate the worth (fair market value) of the property you are purchasing.

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Closing or Settlement Agent

The party who conducts the closing meeting. This role may be filled by an attorney, title company, or real estate agents depending upon the state where the property is located.

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Loan Officer

A Loan Officer represents one lending institution and their loan programs. They help you choose the best mortgage loan based upon your situation and will help you complete the loan application.

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Loan Servicer

The entity that collects mortgage payments (it may or may not be the lender) and pays taxes and insurance and mortgage insurance, if required, on your behalf.

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Mortgage Insurer

By compensating the lender for losses should a borrower be unable to make payments, Mortgage Insurance is often used to purchase a home without a 20% down payment.

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Mortgage Lender

Financial institution that issues loans. Unlike brokers, lenders control the whole process; from underwriting to funding.

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Property Inspector

An individual certified to conduct a examination of the home. An inspector will look for issues that may affect the value of the property and can assess the condition of a property’s roof, foundation, heating and cooling sys- tems, plumbing, electrical work, water and sewage, and some safety issues.

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Real Estate Agent

A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy. They can often provide helpful and specific community information such as shop-ping, transportation, and schools.

Looking to buy your first home?

When considering the purchase of a home, you’re bound to have questions. Well, you’ve come to the right place!

Steps to home ownership made easy

Purchasing a home can seem complex. Obtaining a mortgage shouldn’t be. Here is a simple checklist to get you started.

Top 5 reasons to get-prequalified

Getting prequalified is a great first step when beginning to shop for a home.

Disclaimer: SecurityNational Mortgage Company, and its loan officers, unless individually licensed and specifically denoted in their credentials, are not qualified to, and are prohibited from representing themselves as accountants, attorneys, certified financial planners, estate planners, investment specialists or tax experts, and will not advise you in those matters. Always seek the advice of a licensed professional. By submitting your contact information you agree to our Terms of Use and our Privacy Policy. You also expressly consent to having SecurityNational Mortgage Company contact you about your inquiry. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company is an Equal Housing Lender. Company NMLS# 3116

Mortgage do’s and don’ts

Helpful Articles > First-time homebuyers

Mortgage do’s and don’ts

Do’s

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Do keep paying bills on time

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Do let us know of any significant changes (job, new expenses)

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Do get us all documentation requested on a timely basis

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Do tell us of large new deposits to bank accounts

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Do keep a paper trail of new deposits/transfers into bank accounts that are not payroll related

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Do use funds for closing from only the asset accounts we have verified

Don’ts

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Refrain from changing jobs, becoming self-employed or quitting your job

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Refrain from buying a new vehicle or other large purchases (furniture, appliances) on credit

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Refrain from using credit cards excessively and increasing credit card balances

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Refrain from making large deposits or changing banks without first checking with your loan officer

Looking to buy your first home?

When considering the purchase of a home, you’re bound to have questions. Well, you’ve come to the right place!

Steps to home ownership made easy

Purchasing a home can seem complex. Obtaining a mortgage shouldn’t be. Here is a simple checklist to get you started.

Top 5 reasons to get-prequalified

Getting prequalified is a great first step when beginning to shop for a home.

Disclaimer: SecurityNational Mortgage Company, and its loan officers, unless individually licensed and specifically denoted in their credentials, are not qualified to, and are prohibited from representing themselves as accountants, attorneys, certified financial planners, estate planners, investment specialists or tax experts, and will not advise you in those matters. Always seek the advice of a licensed professional. By submitting your contact information you agree to our Terms of Use and our Privacy Policy. You also expressly consent to having SecurityNational Mortgage Company contact you about your inquiry. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company is an Equal Housing Lender. Company NMLS# 3116

Common loan documents needed prior to closing your loan

Helpful Articles > First-time homebuyers

Common loan documents needed prior to closing your loan

*SecurityNational Mortgage Company does not require income documentation to complete a loan application or to receive a loan estimate.

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Last 2 years W2's

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Last 2 years tax returns with all schedules (if applicable)

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1099s and copy of business license (if applicable)

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Most recent pay stubs (minumum of 30 days)

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2 months most recent bank statements (all accounts and all pages)

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Explanation of any inquires on credit report (signed and dated)

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Copy of earnest money check and purchase contract (for purchase transactions)

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Mortgage statement (for refinance transactions)

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Most recent homeowners insurance policy and tax statement for all properties owned (if applicable)

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Trust documentation (if applicable)

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Trust documentation (if applicable)

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Divorce decree/separation agreement and child support order (if applicable)

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Identification documentation, such as driver’s license, permanent resident alien card, etc.

Looking to buy your first home?

When considering the purchase of a home, you’re bound to have questions. Well, you’ve come to the right place!

Steps to home ownership made easy

Purchasing a home can seem complex. Obtaining a mortgage shouldn’t be. Here is a simple checklist to get you started.

Top 5 reasons to get-prequalified

Getting prequalified is a great first step when beginning to shop for a home.

Disclaimer: SecurityNational Mortgage Company, and its loan officers, unless individually licensed and specifically denoted in their credentials, are not qualified to, and are prohibited from representing themselves as accountants, attorneys, certified financial planners, estate planners, investment specialists or tax experts, and will not advise you in those matters. Always seek the advice of a licensed professional. By submitting your contact information you agree to our Terms of Use and our Privacy Policy. You also expressly consent to having SecurityNational Mortgage Company contact you about your inquiry. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice. SecurityNational Mortgage Company is an Equal Housing Lender. Company NMLS# 3116