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Buying a home is one of the most important decisions you
may ever make in your life. In addition to the sheer size
of the purchase, the home you choose will help build your
financial future and securing the American dream.
There are many benefits to home ownership. These are unavailable
to renters and provide you with a great number of opportunities.
Homeownership -
- Helps establish a positive credit history: mortgage payments
are weighted differently than other debt.
- Starts building wealth: by paying your monthly mortgage payment
you are securing equity in your home that contributes to you
long-term savings.
- Reduces your tax burden: In most cases the interest you pay
in your mortgage is tax deductible and reduces your taxable
income.
- Eliminates landlord issues: owning your house means you never
again have to worry about rent increases or lease terms.
- Promotes a sense of responsibility and control over one's
environment: the stability of owning a home is a major factor
in self-satisfaction and security.
All this contributes to the many reasons qualified individuals
should escape the pitfalls of renting and start building real
future by owning a home. Even if you are single and don’t
have a family, owning a home is an attractive and intelligent
decision to make.
Each month you are paying rent you are fattening the pockets
of your landlord. By buying your own home, those monthly payments
(which are comparable to most rent amounts) contribute to
your own wealth. Each payment you make is turned into real
equity that can be sold, or used as collateral to purchase
other items.
Pre-home buying assessment
While buying a home has its inherent benefits not everyone
is in a position to make the next step. We recommend that
each buyer first evaluate their personal situation to make
the transition from renter to homeowner a smooth one.
Credit Assessment
A mortgage is a loan one secures to purchase a home. The loan
amount and rate you pay, as well as your overall ability to
secure a home is largely dependent on your credit.
Before you get discouraged and give up hope on becoming a
homeowner because of your credit, there are many opportunities
out there for people with all levels of credit. However, the
better the credit, the easier time you will have getting the
home of your dreams. Especially if your credit score is not
perfect, before you start to buy a home is the best time for
a little house cleaning to ensure a smooth loan process. It
is always a good idea to make a regular assessment of your
credit worthiness and keep a finger on your score.
Here are a few suggestions:
Check your credit report – many places offer a free
credit report or one for a nominal fee. Acquire a copy of
yours and check it for inaccuracies. If something is being
reported that is outdated or false, contact the credit agency
to correct them.
Get rid of accounts you don’t use – the total number
of open credit accounts may negatively figure into your score.
If you have accounts that you don’t use, close them and
discard the plastic.
Make timely payments – an often-overlooked factor is
the issue of timely payments made to your creditors. Too many
late payments can affect your loan worthiness and cost you
the house of your dreams. Make a regular payment schedule
and stick to it.
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