Are you thinking about buying a home? The time may be right to make your move out of the world of renting and into that of home ownership. There are many advantages to buying a home. However, the first step is get pre-qualified with a mortgage lender today so that you know what kind of home you can afford and so that when you find the right one, you are ready to make an offer.
The Advantages of Home Ownership
1. Home Equity–Although we have been in a declining market over the past few years, historically real estate values go up over time creating home equity for home owners. This equity occurs in two ways. First, as you make your monthly payment a portion goes to pay down the amount you owe. This is called principal pay down and creates equity in your home. The second way equity is gained is through home values going up. This has not happened as of late but because home prices are down this may be a great opportunity to get the home you have wanted at a reasonable price.
2. Tax Savings–None of us like paying taxes. When you get a mortgage at the time of buying a home, you create a great opportunity to save money on your taxes. The property taxes and the interest you pay on your mortgage is a tax deduction. For example, if you end up paying 30% of your income in taxes then you essentially get 30% of your house payment back in tax savings. This is a huge advantage of home ownership over renting. You will want to consult with your tax advisor regarding the tax advantages.
3. Settled In–When you become a home owner, you are able to settle in. By this I mean that you are able to decorate and remodel your home the way that you choose. You are able to make friends with neighbors and know that you will be there as long as you choose. If you have children you are able to settle in to the schools and local sporting programs. There is a feeling of security and consistency that comes from buying a home rather than renting and being at the mercy of a landlord.
If these advantages are what you are looking for, you should look to get pre-qualified with a mortgage lender to see what price range home you should be looking at. Once you know what price home you can comfortably afford, you are able to look at location, style, and the size of the home that you want to pursue when buying a home. Finding a lender is easy online, and oftentimes you can get multiple mortgage quotes for your mortgage loan with one application.