The First Step
The first step in purchasing a home is not finding one you like.
Why? If you are serious about buying a home, you need to know what you can
afford. Don't waist your time
looking at houses until you know you can buy one. Also, if you fall in
love with the perfect house and need to act quickly, your offer will be
considered more seriously if it is accompanied by a pre-qualification
letter from a lender. I require that Home-Buyers obtain a
pre-qualification letter before I will show them a home.
Advantages of Home Ownership
First-Time Home-Buyers: Escaping the rent trap allows you to start
creating wealth for your family and your future. There's no better way to
create wealth than owning real estate. Why? Several reasons:
- At the end of 5 years paying rent on time, you have had a
place to live and gained a stack of receipts. If you were buying a
home during that same time period you would have had a place to live and
most likely earned tens of thousands of dollars in equity.
- You pay less to Uncle Sam when you are buying a home
because interest payments are tax deductible. This policy is put in
place purposely by our government, so that you can create wealth rather than
simply get by.
- When you rent your monthly payments increase over time. When
you buy, the payments stay the same (on most conventional loans). Even though
your home is increasing in
value, your housing expense remains basically constant until it's paid
off. At that point your total living expenses are dramatically reduced
because you have no mortgage payment.
- Your attitude toward your house and your neighborhood
changes for the better when you are buying. You care more that the
neighborhood is a desirable place to live because when people want to live
there the property values steadily increase. In other words, our
capitalist system, is a strong motivator for individuals and
families to better their environment over time rather than let it
degrade.
Now, you have to live somewhere. You could be buying
your own house instead of paying someone else's mortgage. Simply put, owning a home is wise. Home ownership will
benefit your future. Make choices that lead to
home ownership. It's a good move.
