Are you considering home ownership and are wondering if there are any perks? Or should you stay renting? There are some awesome perks.
People buy homes each and every day but nothing compares to that first time home purchase.
With so many lenders to choose from, you want to be sure and select the right one.
It's an exciting experience. But if you aren't in a position to take care of a home, then renting is better for you.
A good friend of mine decided to move from an apartment to a rental home and discovered it wasn't for her.
Why? Yard maintenance....she now had to mow the lawn, shovel the snow and other small maintenance projects. She hadn't counted the cost of living in a rental home vs apartment.
Home ownership is the same, it doesn't fit everyone's personal circumstances. But if it does fit your personal circumstances, it is awesome. Let me show you why.....
When you are in a position to become a first time owner, there are many programs offered to those buying for the first time. Sometimes you can find even better interest rates.
One mortgage product that is available to those making a first time purchase is the FHA loan products. They were created just for you, the first buyer.
So that's one benefit, it you're ready to buy a home and it fits your personal circumstances. Here are more.
Home equity is an awesome benefit. When you rent, the money is paid to the landlord and is gone. You cannot go back and borrow it when there is an emergency can you?
But when you buy, your home will appreciate in value, if you buy in the right area. It is true that sometimes the markets go up and go down. But over the long term homes usually appreciate in value. That is like money in the bank!
Let me give you an example. My first home purchase was $16,000! But it sold for $45,000. You see what I'm talking about. The difference between what you paid for the home and what it is worth over time is your equity.
When an emergency comes up you can borrow against that equity for help. Or wait until you sell the home to pocket that equity. Or you could use that equity to buy a bigger home. That is what I did.
You can also offset your taxes by deducting the interest you pay on your loan yearly. This is a nice deduction and can help lower the amount of income taxes you pay each year.
Let's not discount the benefit of pride of ownership. You can choose your own taste to decorate your living space. You don't have anyone else deciding for you the color you want to paint your walls.
You design your yard the way you want to and sit back and truly enjoy what you have accomplished. You can play your music the way you want to and don't have neighbors pounding on the walls telling you to turn it down. This is a top notch first time home buyer benefit.
Buying your first home is one of the most exciting times for a person for many reasons. You get to take that wonderful journey of looking for that perfect place to call home while taking advantage of these many benefits.
There's nothing like having something you call your own! Can you see why I see this as one of the first time home buyer benefits?
Some states offer what is called a homestead exemption. This gives first time home buyers a $25,000 credit applied to their yearly home owner taxes. This can only be used on the first home you purchase and you have to reside in that home.
If your state offers this, then you will love this one of the first time home buyer benefits.
This is the benefit that pays over the long run. Once your payment is set up, your mortgage payment will essentially remain the same. It is true, if your taxes and insurance is included in the payment, then the payment may adjust because of them. But basically your monthly housing cost remains the same.
Also, it should be a fixed mortgage to remain the same. Whether a 15 year, 20 year, or 30 year, fixed means the payment for your mortgage is the same. Now if you get and adjustable rate mortgage, it will adjust either up or down. That's what the word adjustable means. But as a first time buyer, you shouldn't be looking at adjustables anyway. Fixed is best for you!
When you rent, you know that the rent is going to increase. Unfortunately, that's a fact of life.
Let me use an example for you of how that is a benefit. Back in the 1970's when I bought my first home, my mortgage payment was $145 a month. I sold that home in the 1990's, but for a monthly expense of $145 a month......you couldn't even considering renting for that then!
Now you see why I consider it one of the first time home buyer benefits over the long term!
Would you like to find out if you qualify for a first home purchase? Check out the FHA loan product and see if you qualify. They offer the most for those looking to be a first time home owner.
Do you have more questions? Have a Question is a cool place to look for answers or ask a question.
Would you like to read others first home stories? There are some awesome stories told here. Read about what others have been through and learn!
Go to House Buyer Solutions Home Page.
Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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