In addition to providing you and your family with stability and the freedom and flexibility to customize the space you live in as you please, homeownership affords these three main financial benefits:
- It allows you to build equity over the long term
- The value of your home may appreciate over time
- Potential for tax advantages
Steps to take before buying a home:
- Decide if you are ready to take on the responsibility of buying a home
- Check your finances: your savings should be at least enough for the down payment
- If you don’t have one, create a budget to manage your finances
- Check your credit score, many FICO score organizations offer a free credit report
- Resolve any problem items on your credit score, which may hinder your ability to purchase a home
- Pre-approval: Mortgage lenders can pre-approve you for a mortgage to purchase a home. This will help you to understand the type of mortgage that best suits you
- Identify and partner with a licensed real estate agent who will help you to search for and purchase your home
- Write down a list of your requirements regarding your home. Consider such things as proximity to schools, proximity to your place of employment, access to transportation hubs and freeways, access to shopping and other activities. How safe is the area? Are there any environmental concerns, etc.?
- Shop for mortgage offers from various lenders. It works to the homeowner’s advantage to explore the various options available in the mortgage marketplace
- Once you have found a house and would like to make an offer on it, your real estate agent can assist you in ordering a title report on the house, as well as ordering an appraisal by a licensed appraiser
- Insist on a home inspection. An inspection may reveal issues with the house, which may not have been known and or disclosed by the seller
- The final step in purchasing a home is the closing. A title company will ensure the transfer of ownership of the home is properly recorded with the local and state authorities
