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Whether you have been planning a move for years or are trying to decide if you can afford to move, you must decide where you want to go and how to get there.
Here are some tips to help you prioritize your venture and make this process as enjoyable as possible.
(1) Prequalify for a loan: This is the first step in your venture because it determines how much home you can afford. It will also allow you to move quickly when you find the right home. Sellers like to see this because it shows them you are a serious buyer.
(2) Time frame: Keep in mind it might up to 90 days, or more, to complete the whole process. This includes locating the right home and submitting an offer, securing financing, inspections and closing.
(3) Define your search: Remember, location, location, location. Research areas based on criteria that is important to you (i.e. schools, proximity to work, etc….) Now, make a list of items you want your dream to have. Specify “wants” and “needs” to see what has to stay or what you can live without.
Benefits of home ownership
You may still wonder if buying a home is the right thing to do. Relax. Having some reservations is normal. The more you know about why you should buy a home the less scary and more enjoyable the process will be. Here are some reasons to buy…
Deductions
Home ownership allows opportunities for tax breaks for the homeowner. The mortgage interest on the property is fully deductible on your tax return. This will mean a lot at the end of the year considering this interest makes up a large amount of the monthly payment.
Appreciation
The real estate market moves in cycles and may fluctuate from time to time but for the most part it is one of the safest investments you can make.
Pride of ownership
Making an investment in your future gives you and your family a sense of stability and security. It also means you can paint the walls, change the flooring and do any other major improvements to the property.
Capital gain exclusion
If single, this benefit gives the opportunity to exclude $250,000 of profit from the sale of your property. A married couple is allowed $500,000 of profit. The main requirement is to live in the home two of the past five years.
Equity loans
Consumers can borrow money against a home’s equity for a variety of reasons such as college, home improvements, etc. Equity loan interest is often much less and is tax deductible.
So, why haven’t you bought yet?
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