Becoming a homeowner comes with a lot of rewards, as well as added responsibility. Deciding to make such an important purchase is specific to your lifestyle. Here are some benefits and considerations you should discuss with your Loan Officer before you begin the buying process.
Benefits of homeownership:
- Build Wealth Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This would provide you with a significant return on your investment.
- Build Equity Equity is the amount of money your house is worth minus what you still owe. Every time you make a mortgage payment, the amount you owe reduces and increases overall equity. This is beneficial, because equity can be accessed and converted to cash. See our Refinancing page to learn more.
- Tax Deductions As a home owner, your mortgage interest and property tax payments may be deductible from your federal taxes and possibly state taxes.*
*Consult a tax professional for more information.
- Strengthen Credit History Making monthly loan payments is evidence that you are a responsible borrower, which builds your credit history. This will help you take out loans for other purchases, such as a car or even home renovations.
- Create the Home You Want Owning a home gives you the freedom to create your dream living environment. Whether you want to update appliances, paint rooms, landscape a yard, own pets – you will have a house that is completely yours to customize.
Questions to consider as a home buyer:
How much can I afford?
Before you starting house hunting, you need to make sure you are looking in the right price range. Getting pre-qualified by your Loan Officer will give you a better idea of how much home you can afford based on your current financial situation.
How long do I want to stay in my home?
Think about where you will be in the years to come; whether you want to move again or planning to stay long term. This is an important factor when deciding which type of mortgage is best for you.
What am I looking for in a home?
As you begin to contemplate buying, make a list of the most important things you want in a home. For example: a condo or single family home, monthly mortgage payment, location to work and school zones, neighborhood amenities, and yard size. Not only will this list help your real estate professional find the perfect home, it will also help your Loan Officer tailor a loan program that fits your needs.
Should I consider a second home?
Buying another property as a rental can provide ongoing income from tenants, and a vacation home on the beach or mountains is equally attractive. However, you will need to decide whether the home will be a place to live (primary residence) or a place to rent (investment property). Loan specifications are different based on how you plan to utilize the home. Your Loan Officer can explain the different requirements and help navigate through the process.
We’re here to help
Buying a home is more than a transaction: it is an achievement. Meet with your Loan Officer to discover your options and begin the path to home ownership.