Buying a home is a big financial investment – perhaps the biggest one you’ll make in your life. Be sure to do your homework and carefully evaluate how you want to live and how much you can comfortably afford.
Homeownership can be very rewarding if you are properly prepared, know what to expect, and make informed financial decisions.
Home Ownership Advantages
- You can build home equity and wealth
- Sizable tax deductions possible
- Your space, your rules (pets welcome)
- Ability to remodel, expand, tear down
- Pride of ownership (social status, accomplishment)
- Potentially better for children, family structure
- Mortgage can improve your credit history/score
- Ability to borrow against your home (HELOC or cash-out)
- No more monthly payment once mortgage is paid off
- Fixed payments (if you choose a fixed mortgage)
- Mortgages are the cheapest loans available
- No landlord
- Leveraged investment
- Can sell and use proceeds for bigger/better home
- Can rent out to others
- It’s the American Dream!
- Rental payment may exceed monthly cost of mortgage
- No ownership or wealth creation
- Payments never stop when renting
- Rent will rise over time
- Must deal with a landlord or management company
- No tax benefits
- Rules, regulations, and limitations
- More temporary, less stability
- Always at the mercy of the property owner
Is buying a home right for you? It may make sense if you:
- Have reliable income, good credit, and documentation to verify your savings.
- Can afford at least a 3% down payment and related closing costs.
- Want a chance to build equity and be eligible for homeowner tax breaks and credits.
- Have the time and money required for home maintenance and improvement projects.
- Have an adequate cash reserve to withstand a loss of job, illness, or other financial setback.
- Are planning on staying in your home for at least five years.
Have more questions about buying a home?
Visit our website to “Chat with a Lender” tomorrow from 2-4pm.
Get Pre-Qualified or contact a Lender to get you started with your home buying experience.
Mika Baker NMLS# 487274
Kourtney Hanger NMLS #1627278
Janice Hoxsey NMLS # 1233328