WHY OWN A HOME
 Home ownership: Making the move from being a
renter to being a homeowner.
Is home ownership your
American Dream? If so, taking the time to do your homework will
help make it a dream come true.
Let’s begin
by looking at the benefits of being a homeowner.
The
Advantages:
A home is a place to call your own. Do you long
for a feeling of permanence? Do you dislike following your
landlord’s rules? Do you need more space? Do you want to raise a
family and/or have pets?
If you answered "yes" to any of these
questions, then home ownership may be right for you. In addition
to these lifestyle issues, owning a home can be an excellent
investment. Here’s why:
Tax
savings.
Homeowners receive tax deductions that are not
available to renters. That’s because the interest paid on a
mortgage is, in most cases, deductible.* The result can be a
substantial savings on your income tax return every year.
Housing
cost stability.
While rent can increase year after year,
if you choose a fixed-rate mortgage, your mortgage payment will
remain stable and predictable. (However, you should be aware that
an Adjustable Rate Mortgage does not offer this advantage.)
 It’s a savings plan!
Your monthly
mortgage payments act as a scheduled savings plan. Over time, as
you make your mortgage payments, you accumulate what is known as
"equity." Equity is created when the value of your property is
greater than your mortgage. In contrast, rent payments never earn
equity.
Increasing value.
Generally, property increases
in value over time. This process is also known as appreciation.
This increased worth is equity you can borrow against or take as
profit upon the sale of the property.
*Be sure to check
with your tax advisor regarding the deductibility of mortgage
interest.
Can you
afford home ownership?
Home ownership comes with certain
responsibilities. First and foremost is your responsibility to
make your mortgage payments. In addition to your mortgage, you’ll
need to have money for the cost of moving into your new home,
making any necessary repairs, paying property taxes, hazard
insurance, and association dues (if applicable), as well as for
regular maintenance of the property.
It’s possible that
these expenses will amount to more than you are currently paying
in rent, although not always. If home ownership is your goal, you
may need to alter your personal spending habits in order to afford
a home of your own.
We can help
calculate whether or not it’s the right time to become a
homeowner. A number of factors need to be considered, including
down payment, closing costs, monthly mortgage payment, taxes, and
insurance, as well as other related costs of home ownership.
 In addition to helping you determine whether or
not you can afford to become a homeowner, we will help decide
approximately how large a mortgage you can qualify for. This
process is called "pre-qualification." We may also be able to get
you "pre-approved." That means actual lender approval for a
specific loan amount.
We can also
help you by offering available alternatives and options to
overcome any potential uncertainties you may have in credit
history, income, expenses, and other financial factors.
Are you
mentally prepared?
In addition to being financially ready
to assume the responsibilities of home ownership, you need to be
in the right frame of mind.
To help you make this important decision, you
may want to ask yourself these questions:
- Are you ready for the
responsibilities of owning and maintaining a house?
- Do you have a steady income and
stable employment?
- Do you anticipate staying in the
same geographic location for the next few years or more?
- Have you created a budget to
determine if you can realistically afford to be a homeowner?
- Do you have a clear credit record,
or are there items in your credit history that need to be
explained?
- Do you have a down payment
saved, and if not, can you rely on the gift of a relative? (Some
limitations usually apply to how much of the down payment can be
a gift – we can explain this more fully.)
- Have you been "pre-qualified" to
determine how much money you can borrow?
- Are you ready to learn about the
many alternatives and options available for home financing?
If you can answer
"yes" to all of these questions, you are on the way to becoming a
homeowner.
Contact Us
for more details about the advantages of home ownership, as well
as answers to any questions you may have regarding your ability to
purchase your piece of the American Dream. | 
