Thursday, April 17, 2008

First-Time Homebuyer - Part One

You're ready to buy a house!

A home can be one of your best investments
if you do your research and don't rush into it. In the next series of posts I will try to answer a lot of questions a first-time home buyer might have and prepare you for that most important step. If you have any questions, feel free to leave them in the comments section and I'll respond as quickly as possible.

What are the advantages of owning your own home?

  • It's yours and you can do what you want with it (in most cases)
  • When filing taxes, you can deduct your mortgage interest (if you itemize)
    • You can deduct the points paid for your loan (with some exceptions)
    • You can deduct your property taxes
    • There are other closing costs that may be deducted
  • It will increase in value (appreciate)
  • You gain equity with every payment you make (you can't do that with rent $)
  • You may eventually borrow against your equity

The process of buying a home can and should be a long one. Make sure you ask many questions of your real estate agent and your loan officer. The reward for your diligence and patience will be a higher degree of satisfaction and confidence in your decision.