- Why should I buy, instead of rent?
- Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
Whether you've spent years saving and preparing to buy a home, or are unsure if you can afford it, the questions surrounding a house purchase can feel endless.
You can find the answers - and peace of mind - by working with Erin & Rebecca. Let their experience help guide you through your first time home purchase.
Here are some tips to help you become your own landlord.
- Hire a real estate professional.
The first step is to select a professional to help you find your dream home and fine-tune your financial expectations. As real estate commissions are paid by home sellers in the majority of transactions, the experience, knowledge and resources of Erin & Rebecca are provided to Buyers free of charge. - Shop for mortgage rates and terms.
A difference of even half a percentage point can mean a huge savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600. - Prequalify for a loan.
Your third step should be to get prequalified, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property.