Buy a Home
Why Rent When You Can Buy?
Are you unsure about becoming a HOMEOWNER? Thinking that you can't afford to BUY a home? Are you worried about whether home buying is a good INVESTMENT?
Buying a first home can be an intimidating process. But the first step is making those first decisions: I want to own my own home; I can afford to own my own home; owning my own home makes sense for me financially and emotionally. If you are still struggling with those first decisions, here are some facts that might help you make that first step towards becoming a homeowner.
Are You Ready to Buy a Home?
Ask yourself the following questions.
If you answer "yes" to most of the questions, you're probably ready to buy a home. If you answer "no," concentrate on strengthening these areas or take a homeownership education class in your area.
- Do I have a continuous, reliable source of income?
- Have I been employed continuously for the last 2 years even if it has not been in the same job, and is it likely to continue?
- Do I have a checking and/or savings account established with a financial institution or do I keep accurate records of paying my bills regularly and on time?
- Do I file an income tax return with the IRS each year?
- Do I pay my bills on time?
- Is my total debt manageable?
- Are all of my regular financial obligations accounted for in my total debt?
- Do I have some money saved for a down payment?
- Do I have some money saved for closing costs?
- Can I afford both the mortgage and other expenses?
- Do I have time to take care of a house?
- Do I have time to devote to buying a home right now?
- Do I have money to cover moving expenses?
- If I've experienced financial difficulties in the past, can I prove that it was due to events beyond my control?
You Can't Afford Not to Buy a Home
Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3 percent per year. That means that an apartment or home renting for $750 per month will cost more than $978 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $103,000!
Tax Advantages of Owning a Home Result in Savings
None of that $103,000 is returned to you, either through savings or as an investment. Homeownership, on the other hand, has tax advantages over renting a home, and those advantages can help you save money. Unlike your monthly rent, part of your monthly mortgage payment "comes back to you" in tax savings.
Homeownership is a Good Investment
For the majority of Americans their home is their largest financial asset and a major player in their investment portfolio. You build equity! In the early years of a mortgage, the majority of your monthly payments go toward paying the interest. Over time, an increasing amount goes toward reducing the mortgage balance, or "principal." The process of paying off a loan over a set period of time is called "amortization."
As you make payments, you reduce the principal and increase your share or "equity" in your home's value. If your home increases in value through "appreciation" - an increase in the value of a home - your equity builds even faster.
Building equity - or savings - in your home is important. For many people, it lets them plan for retirement, pay for college and achieve other future goals.
You have a place for your family and relatives to live in and gain a sense of community!
When you own a home, you can be secure in knowing that your family, and, if need be, your relatives, will have a place to live. When you rent, you might not always be able to renew your lease.
Owning also gives you an opportunity to get involved in the well-being of your community. You may even feel a greater sense of belonging.
More than 2/3 of people in the U.S. own their home today. And the number keeps growing. Yet, some people believe they could never own a home.
Could this be you?
Maybe you're not sure you know enough about the process of buying a home or you're intimidated by it. Or, you worry that you can't afford to buy a house because you haven't saved enough money.
Maybe your credit has blemishes. Or, you've never established a relationship with a financial institution or credit company and have no credit at all.
Perhaps you're not a U.S. citizen or permanent resident and you don't plan to live in the U.S. very long. Or, you have difficulty speaking and understanding English and would be less intimidated if you could work with people who speak your native language.
Think again!
These concerns don't have to be obstacles to homeownership. With the right information the dream of homeownership could be within your reach!
At Chicago Title, We Treat Loyalty Like Royalty