Blue Jean Realty - Buyers’ Info

7 REASONS TO OWN YOUR HOME

1. TAX BREAKS. The US Tax code lets you deduct the interest you pay on your mortgage, property taxes, and some of the costs involved in buying your home.
2. GAINS. Between 1998 and 2002, national home prices increased an average of .4% annually. While there is no guarantee of appreciation, a 2001 study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
3. EQUITY. Money paid for rent is money that you will never see again, but mortgage payments let you build equity ownership interest in your home.
4. SAVINGS. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 as gain without owing any federal income tax.
5. PREDICTABILI’IY. Unlike rent, mortgage payments don’t go up over time so your housing costs may actually decline as you own the home longer. Keep in mind that taxes/insurance costs could rise.
6. FREEDOM. The home is yours, so you can decorate any way you want and be able to benefit from your investment for as long as you own the home.
7. STABILITY. Remaining in one location gives you a chance to participate in community activities, establish lasting friendships, and offers your children the benefit of educational continuity.

10 Steps to Prepare for Homeownersbip

1. Decide on how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
2. Develop a wish list of what you would like your home to have. Then prioritize the features on your list.
3. Select three or four neighborhoods you would like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
4. Determine if you have saved enough money to cover your down payment and closing costs. Closing costs, including taxes, attorney’s fees, and transfer fees average between 2-7% of the home price.
5. Get your credit in order. Obtain a copy of your credit report.
6. Determine how large a mortgage you can qualify for. Also explore different loan options and determine what is best for you.
7. Organize all the documentation a lender will need to preapprove a loan for you.
8. Do research to determine if you qualify for any special mortgage or down payment assistance programs.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experience REALTOR who can help you through the process.