Should You Buy?
In the U.S., you’re able to deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home from your taxes.
Click here and use the tax calculator estimate the savings that you could get from the tax-deductible portion of your mortgage.
Real Estate investments have had a stable growth pattern since The Great Depression. Median home prices have increased on average 5.2% each year since 1972.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Building equity in your home is like having a long-term savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer.
However, keep in mind that property taxes and insurance costs will likely increase.
The home is yours. No need to worry about what a landlord might say. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to you. Want a pet? GET ONE.
Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.
It also offers children the benefit of educational and social continuity.
BEFORE YOU BUY
CHECK YOUR CREDIT SCORE
Do not start browsing homes until you have checked your credit score. This is the number that mortgage lenders will look at to determine whether you are “creditworthy,” and thus dictates the rates you will get. The higher your credit score, the lower your interest rate—and that’s what you’re going for. Get a free copy of yours at www.AnnualCreditReport.com to see where you stand.
If Any surprises on that report? Credit errors are more common than you might think, so contact the credit bureau to correct any erroneous information.
SAVE UP FOR A DOWN PAYMENT
To get the best rates, you’ll need to make at least a 20% down payment on a home. With the current median home price of $306,700, that comes to $61,340. That’s a lot of money! Once you’re ramping up to buy a home, it’s wise to not make any—we repeat, any—major changes in your life or, most important, your finances. Do not switch jobs. Do not buy a new car. Do not even buy furniture or apply for a new credit card, which could affect your credit. Just a credit pull alone from a car dealership or a furniture store is enough to affect your credit score and could cause you to lose your dream home.
Getting pre-qualified is essential for the early stages of the home buying process, and invaluable for planning purposes. Based on information you submit, the lender will tell you how much you can borrow towards your new home.
FIND A REAL ESTATE AGENT
There’s no reason to go it alone—having an agent helping you can make the whole process much easier. In times like these, with a limited number of homes on the market, a buyer needs a great Realtor to make sure they find their dream home. Referrals are often a good place to start; check with family and friends.
COMPLETE THE AGREEMENT
The Buyer’s Agreement is where the rubber hits the road. Once completed, we’ll be off and running to try and find the property that matches your wants and needs.
TELL US WHAT YOU WANT
One of the final steps before takeoff is understanding your wants and needs. It’s important to outline your budget and what you can afford, your timeline for buying a home, what it is you want in a home, and what it is you need. We’ll do our best to find you the perfect home based on these conditions.
THE SEARCH IS ON!
Now the fun begins. We’ll take the information you provided and begin to utilize our vast networks and resources to find homes that have what you’re looking for. We’ll get showings set up and work with you to get everything you deserve. when you’re ready to submit an offer, we’ll write the offers with your best interests in mind.