This is a question that most people ask themselves.
Below you will find some frequently asked questions and answers about whether or not you should purchase a home.
What are the Advantages of Home Ownership? oSignificant appreciation and wealth building opportunity oGenerally known as the best investment one can make oLocked in monthly payments for a specific term oTax deductibility of interest and taxes oPride of ownership; sense of community What are the Benefits of Home Ownership? Building Equity - Loan Principle Reduction oPrinciple payments reduce the amount of money you owe to your lender if you pay more than interest only oWhen you sell your home, your cash proceeds are increased by the amount that you have paid down your loan and appreciation of the property Building Equity- Property Appreciation oThe appreciation of your property is the increase in your value from the time you purchase until the time you sell oThis typically is the biggest financial benefit of owning a home oYour appreciation is based on the increase in the total value of the house unlike most investments where the return is based on your initial cash investment What are the Tax Benefits of Ownership? oThe interest that you pay on your home mortgage is tax deductible oThe real estate taxes that you pay are also tax deductible oThis dramatically decreases the amount of income tax that you owe.
oThis tax benefit can be realized at the end of the year in a larger refund or taken throughout the year by decreasing your withholding on your W4.
The actual amount of the benefit depends on your tax bracket.
Please consult with your CPA.
What are the Disadvantages of Renting? oNo appreciation oRent usually increases annually oNo voice in management oNo tax benefits oNo pride of ownership oCannot alter interior of renal units oSubject to sale requiring renter to move What credit score must I have to qualify for a mortgage? oRight now the minimum credit score is 580.
But most lenders will want you to have a 620 What do I need to apply for a mortgage? oCall our office to complete a buyer prequalification form oComplete a mortgage application o2 most recent pay stubs oDown payment of 3% of selling price.
(if you are a 1st time homebuyer) How much money do I need to have at closing? oDown Payment of 3% of selling price oClosing cost and prepaid items (Generally 2% of purchase price).
However most sellers will pay your closing cost right now.
Can my down payment be given to me? oAbsolutely as long as it comes from a relative How long does it take to close once I am approved? oClosing could take place in as little as two weeks Do I qualify for the US Government 1st Time Homebuyer Tax Credit? oYes, if you are a 1st time homebuyer or if you haven't been on title for the past three years
Below you will find some frequently asked questions and answers about whether or not you should purchase a home.
What are the Advantages of Home Ownership? oSignificant appreciation and wealth building opportunity oGenerally known as the best investment one can make oLocked in monthly payments for a specific term oTax deductibility of interest and taxes oPride of ownership; sense of community What are the Benefits of Home Ownership? Building Equity - Loan Principle Reduction oPrinciple payments reduce the amount of money you owe to your lender if you pay more than interest only oWhen you sell your home, your cash proceeds are increased by the amount that you have paid down your loan and appreciation of the property Building Equity- Property Appreciation oThe appreciation of your property is the increase in your value from the time you purchase until the time you sell oThis typically is the biggest financial benefit of owning a home oYour appreciation is based on the increase in the total value of the house unlike most investments where the return is based on your initial cash investment What are the Tax Benefits of Ownership? oThe interest that you pay on your home mortgage is tax deductible oThe real estate taxes that you pay are also tax deductible oThis dramatically decreases the amount of income tax that you owe.
oThis tax benefit can be realized at the end of the year in a larger refund or taken throughout the year by decreasing your withholding on your W4.
The actual amount of the benefit depends on your tax bracket.
Please consult with your CPA.
What are the Disadvantages of Renting? oNo appreciation oRent usually increases annually oNo voice in management oNo tax benefits oNo pride of ownership oCannot alter interior of renal units oSubject to sale requiring renter to move What credit score must I have to qualify for a mortgage? oRight now the minimum credit score is 580.
But most lenders will want you to have a 620 What do I need to apply for a mortgage? oCall our office to complete a buyer prequalification form oComplete a mortgage application o2 most recent pay stubs oDown payment of 3% of selling price.
(if you are a 1st time homebuyer) How much money do I need to have at closing? oDown Payment of 3% of selling price oClosing cost and prepaid items (Generally 2% of purchase price).
However most sellers will pay your closing cost right now.
Can my down payment be given to me? oAbsolutely as long as it comes from a relative How long does it take to close once I am approved? oClosing could take place in as little as two weeks Do I qualify for the US Government 1st Time Homebuyer Tax Credit? oYes, if you are a 1st time homebuyer or if you haven't been on title for the past three years