first time home buyer

 
home buyer 101

With interest rates at historic lows, home ownership is currently very attractive. However, for most people, buying a home is the largest investment that they will ever make and should not be undertaken without a careful analysis of the benefits and costs. Some of the first questions you should ask yourself when you are thinking of buying are:

  • Is my financial status sufficient to warrant the purchase of a home?
  • Is my credit good enough to qualify for a home loan?
  • Do I have sufficient savings for a down payment or the ability access to funds that can be used for a down payment?
  • Is my income stable and secure, so that I feel confident and comfortable having a mortgage?
  • Am I planning on living in the area for at least two years?

If the answers to these questions are yes, then weighing the benefits of home ownership against the associated responsibilities is the next step in your decision making process.

Benefits:

  • If your home increases in value, that increase in equity belongs to you.
  • Since you are the property owner, you may make changes, improvements and modifications as you wish without the permission of a landlord. ( There may be HOA rules or local ordinances that must be followed.)
  • Assuming that your mortgage has a fixed rate, your monthly housing expense will not increase (Property taxes and HOA dues can increase and may affect your monthly payment to a degree.)
  • If you itemize on your federal tax return, your mortgage interest paid is tax deductible.
  • Unused bedrooms of your home may provide an opportunity for rental income.

Responsibilities:

  • Submitting mortgage payments on time to avoid late fees and default.
  • Maintenance of your home’s interior and exterior. Budgeting for these expenses and doing them as needed is critical in maintaining your home’s value.
  • Maintenance of your property’s landscaping. HOA rules or local regulations may require considerable diligence in this area.
  • Keeping adequate property/casualty insurance in force to protect your home against loss.

For many people, the benefits of home ownership easily outweigh the responsibilities. If this is true for you also, congratulations. You can be soon be on the path to being a home owner. Champagne Properties can help you on your exciting and rewarding journey. Contact us today!