subject: Some Of The Many Good Things About Home Mortgages [print this page] Home mortgages make it possible for you to buy a house. With that, come all of the advantages of home ownership.
Advantages to Owning a Home
It is a good investment opportunity. As you pay for your home, you own more and more of it. That is your equity. If you owe $90,000 on a $100,000 house, you have $10,000 in equity. You can borrow on your equity in some cases. Many people take advantages of home equity loans. That makes it a good place in which to draw cash. Your home will probably go up in value in a few years. Where you live will have a lot to do with the appreciation. That will also increase your equity.
You can get some very good income tax breaks from home ownership. There is a tax break for first time home buyers. If you make certain improvement to your property, you can get energy credits. There is an energy credit for installing solar panels. There is a credit for purchasing an energy efficient central heating or air unit. The real estate tax you pay can be a deductible item. If you itemize taxes, you can claim the interest that you paid on your home loan.
You may increase your credit rating number. Many lenders consider home ownership an important factor in loaning money. This could give you an edge in borrowing in the future.
There are many opportunities for first time home buyers. It makes it much easier for you to get a loan. You can usually get a very low down payment loan. In fact, you may not need a down payment in some cases. Did you know you might have owned a home at one time and still can qualify? With lenders like FHA, you can qualify if it has been three years since you owned a house. There may be other lenders with such options also.
Getting the money may not be as hard as you think. If you choose the right lender they will guide you through the process. The lender will take care of most of things that you will need. However, you can make their job easier, if you know some things. Here are some to consider.
Make sure you have your employment information. That includes income and length of employment. You will need last year tax return. Also, have all of your rent receipts for the previous year. Send off for a copy of your credit report. This will tell you if you might have any problems. In some cases, you can put a written statement in your credit report. This can help explain problems you might have had. Visit a real estate agent or broker. They might be able to recommend a lender. They will also sit down with you and help you with financing questions. They will work with the lender to get you the best deal possible.
There are many benefits of home ownership. Home mortgages are an essential part of getting your first home. The process does not have to be confusing or complicated. Your real estate professional and mortgage lender will work together for you. They can answer any questions and concerns that you may have.
