5 Things To Consider Before Buying A Home

1) Know your credit.

Before you start your home search, it is a good idea to order your credit report and review it for accuracies. If you decide to pay off some items on your credit, it’s smart to pay off the smallest balances first.

2) Know how much home you can afford.

Especially on your first home, don’t try to overdue it and buy the biggest or fanciest home. Make sure that your monthly mortgage payment is affordable given your monthly income.

3) Do your research.

Research various loan programs, your local real estate market, home basics, and mortgage lenders. Make sure you understand these concepts.

4) Get pre-approved.

Once you’re ready to buy and are knowledgeable enough to make a good buying decision, shop around for the best loan that fits your particular needs. Don’t just consider the quoted interest rate; also consider closing costs and the terms.

5) Be smart in your house hunt.

Don’t get carried away by the asthetics of the home, especially if you’re a first-time homebuyer. However, look at other factors that may affect your property’s value and future selling attractiveness. Also pay attention to a good, growing neighborhood, school districts, local tax rates, and flood zones.

Benefits of Home Ownership

Of course, it’s clear that the benefits of buying a home far outweighs renting. If you still aren’t convinced that buying a home is one of the best decisions you can make towards your financial future, here are some reasons to home ownership.

1) Pride. It feels good to know that you own your home.

2) Renting wastes your money; owning makes money and helps to minimize your taxes. Consider this, when you rent, you help pay someone else’s mortgage.

3) You can realize tax benefits when you own a home and can claim the mortgage and interest payments on your taxes.

4) The appreciation and equity in your home can be a profit for you when it’s time to sell.

5) Owning a home makes you attractive for equity loans that is borrowed against the equity in your home and can be used for a variety of reasons.

6) Homeownership helps to foster better neighborhoods because homeowners are more likely to be concerned for their neighborhood’s vitality since it directly affects their property’s value.

7) Homeownership helps to build your financial credibility.