Preparing to Buy a Home in 2025

Home Blog Preparing to Buy a Home in 2025

Posted On: December 16, 2024 by Peoples Bank of Kankakee County in: Home Mortgages

The housing market is always evolving, and 2025 is shaping up to be an exciting year for prospective homebuyers! Whether you're a first-time buyer or planning to upgrade, preparation is key to making a smart investment.

Here's how to get ready to buy your dream home in the coming year.

1. Understand the Current Housing Market

The real estate market fluctuates based on interest rates, demand, and supply. In 2025, it's essential to stay informed about these trends. Higher interest rates may affect your buying power, while local inventory levels can influence home prices.

Tip: Keep an eye on local market reports and talk to real estate agents to get a sense of your area’s trends.

2. Check Your Financial Health

Your financial situation plays a big role in determining your readiness to buy a home. Start by reviewing your credit score, as it directly impacts the type of mortgage you qualify for and your interest rate.

Steps to take:

Check your credit report for errors and correct them if needed.
Pay down existing debts to improve your debt-to-income ratio.
Avoid large purchases or opening new credit accounts before applying for a mortgage.

3. Start Saving for Your Down Payment

The down payment is often one of the biggest hurdles for homebuyers. Depending on the loan program, down payments can range from 3% to 20% of the home’s price.

Peoples Bank Tip: With programs like FHA loans, VA loans, and down payment assistance options, you may be able to buy a home with less money upfront. Talk to our mortgage experts to explore the right option for you.

4. Get Pre-Approved for a Mortgage

Pre-approval is a critical step that gives you a clear picture of how much home you can afford and shows sellers you’re a serious buyer. It’s different from pre-qualification, as it involves a thorough review of your finances.

Peoples Bank Advantage: Our Mortgage Hero process makes pre-approval quick and easy. Apply online, in person, or over the phone and get on the fast track to homeownership.

5. Research Neighborhoods

The right home is about more than just the house itself—it’s also about location. Consider factors like school districts, local amenities, and future development plans.

Pro Tip: Visit neighborhoods at different times of the day to get a feel for the community’s vibe.

6. Budget for Additional Costs

Beyond the down payment and monthly mortgage, buying a home involves other expenses. Prepare for closing costs, property taxes, homeowners insurance, and potential maintenance or repairs.

Peoples Bank Insight: Use our mortgage calculators to estimate these costs and plan your budget accordingly.

7. Partner with a Trusted Team

Buying a home is a major milestone, and having the right team makes all the difference. Work with a knowledgeable real estate agent and a reliable mortgage lender who can guide you through the process.

Peoples Bank Promise: We’re here to help every step of the way with personalized advice, competitive loan options, and expert support.

Why Choose Peoples Bank for Your 2025 Homebuying Journey?

At Peoples Bank, we’re committed to making home ownership accessible and stress-free. From first-time buyers to seasoned homeowners, our tailored mortgage solutions ensure you find the best fit for your needs.

Get started today by exploring our mortgage options or connecting with our team of lending experts. Let us help you make 2025 the year you find your perfect home!

Ready to take the first step? Visit our Mortgage Center online or contact us at Peoples Bank to learn more.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.