Benefits of Buying a Home

Purchasing a home represents a life-changing decision, and as such, should not be taken lightly. Instead, a homebuyer will want to consider the pros and cons of buying a particular residence, along with the benefits of purchasing a house in the first place.

Ultimately, there are many benefits of buying a house, including:

1. Predictable Housing Costs

For many renters, it can be difficult to determine how much housing costs may vary year to year. Plus, renters may be forced to move from one location to the next as soon as a lease expires – something that could prove to be both time-consuming and costly.

Homebuyers can reap the benefits of predictability, and for good reason. Typically, a homebuyer will be able to pay predictable mortgage costs for the life of a home loan. This individual also won’t have to worry about committing substantial time and resources to move regularly. On the other hand, a homebuyer will be able to relocate to a house that he or she owns and enjoy this property for years to come.

2. Home Appreciation

A home offers a terrific asset, one that may increase in value over an extended period of time.

Typically, a well-maintained home will become more valuable over the years, particularly for homeowners who keep their residences looking great. This means if you ever decide to sell your home down the line, you may be able to receive offers that exceed what you initially paid for it.

3. Exceptional Privacy

Finding a place to call your own can be tough. However, homeowners can enjoy unprecedented privacy, as their residences enable them to take a break from the hustle and bustle of the outside world any time they choose.

A home offers a wonderful place where you can relax with family members and friends or on your own. And remember, you can always modify your home to further increase your privacy as well.

4. Unparalleled Security

If you rent a property and break your lease, your landlord can kick you out of your home. Comparatively, if you purchase a house, you own the property. This means you will always have a roof over your head and can rest comfortably in your very own place.

Buying a home can instill a sense of pride in an individual. Furthermore, a homeowner can take solace in the fact that his or her residence is a safe place and enjoy it day after day.

Ready to purchase a house? Not so fast. You’ll first want to contact a real estate agent who can guide you through each stage of the homebuying process. That way, you can receive support from a friendly, expert real estate agent and ensure that you can secure your dream home quickly and effortlessly.

Reach out to a real estate agent today – you’ll be happy you did. With a real estate agent at your side, you can navigate the homebuying process and find your ideal house.

Low Mortgage Rates: Do You Qualify?

Mortgage rates are at historic lows and there is no better time to buy a home. Do you qualify for those low advertised rates? Will you be able to secure a mortgage? Studies show that 6 in 10 people do qualify for mortgage loans. For those that can’t qualify here are ten reasons why a would-be borrower might face rejection:

1. A low credit score will keep you from getting a mortgage. Typically, a score less than 620 is unacceptable by most lender standards.

2. A maxed out credit card threshold will stop a mortgage in its tracks. If your balance more than 30 percent of the allowable credit lenders will take pause.

3. Multiple credit inquiries may drop your credit score. Limit your credit inquiries to mortgage-only credit pulls within a 30-day period.

4. Did you Co-sign a loan with someone? If so, plan to provide 12 months of canceled checks showing they make the payments to the creditor.

5. Other housing liability payments or a consumer loan for a vehicle may prevent your loan approval. Lenders are looking for you to have double the income to offset each dollar of debt you carry.

6. If you are self-employed you may not be showing income under a Schedule C. This reduces your borrowing power.

7. Claiming many unreimbursed business expenses and losses on your taxes may help you pay less taxes but it also can reduce your borrowing power.

8. If you change jobs often this could also hurt your chances at a mortgage. If you occupational status has changed in the past two years it can hurt you.

9. If you are planning on using cash for your purchase think again. All monies must come from some kind of a bank account.

10. Don’t plan on transferring money from different accounts during the loan process. Be prepared to show full bank statements and a chain of deposits etc.

Your mortgage professional should be able to look at your credit, debt, income and assets and make a determination of whether you qualify for a mortgage.

Pros and Cons of Buying a House

To buy or not to buy that is the question. There are reasons for or against homeownership on both sides of the fence. So here are the pros and cons of buying a home. You decide…

Pros:

1. It Costs Less- With record low interest rates, and low home prices a mortgage payment on a house can be less than a rental payments.

2. Equity -If you own a home rather than rent you are building equity. If you pay rent you have nothing to show for it. If you own a home you are building equity. Even if housing prices stay flat part of your mortgage payment goes towards the principal balance and eventually you will own the home.

Cons:

1. You Could Get a Better Money Return-A home may not be the best return on your money. You may find a better return on capital in the stock market. If you are just looking at it in a strictly financial way there are better investment strategies. Historically, the S&P 500 has returned an average of 13.4% — 4.8% higher than the 8.6% average return on housing.

2. It is a Big Commitment-You can’t just sell your house and move quickly. It is a long term decision. If you job requires frequent moves this can be a significant consideration.

Now that you have seen some of the pros and cons the decision is ultimately up to you and what is best in your circumstance. The pros cannot be disputed. Low rates and prices almost make buying a no-brainer if it fits within your financial situation.