The Beginner’s Guide to Professionals

Tips for First-time Home Buyers

Buying a home could be the biggest single purchase you can ever make, so it’s important to be familiar with the numbers before signing any contract.If you’re prepared to take the leap and get your first home, below are seven tips you should consider:

Your Budget

This may sound common sense, but underestimating actual ownership costs is a common error people make. Not only do you have a mortgage, you’ll also have to pay taxes, insurance, and other expenses that accompany having a home.Currently, a down payment will be around 20% of the purchase price.
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Your Credit Score
Finding Ways To Keep Up With Experts

Your credit score has an important role to play in obtaining low-interest financing.Look at your credit report and work out discrepancies before you meet with a lender.

Keeping it Small

Building up new debt prior to home financing can influence your debt-to-income ratio and the amount you can borrow from a lender.Therefore, postpone buying a car or any other big-ticket item on credit if you have plans of buying a home very soon.

Doing Your Homework

Save money and time by shopping around online–there are almost countless websites that can help you with this– to know which lenders are have the most attractive interest rates in your area.Comparison-shopping helps you save cash as well as time in the long run, and if you’re talking about a three-decade mortgage, that’s going to be a rather long run.

Emergency Savings

Many a dream home has grown to be a money pit, costing a lot more money than the owner had budgeted.What if your plumbing breaks down or your street floods?Prior to the purchase, hire a well-reputed home inspector, and prepare for the unforeseen with money allocated for the unknown.

Energy Tax Credits

To enjoy energy tax credits, qualify energy-efficient equipment in your home.Thirty-percent of solar and geothermal installation costs can be claimed on your taxes, and that can give you very nice savings.

Renovations

Though you generally can’t take home improvements on your annual tax return, the good news is that these expenses can help when you decide to sell your home.Simply include them in your home’s adjusted cost basis; bigger basis means smaller capital gain.In order to qualify as a deduction, the renovation must increase your home’s material value, stretch your home’s useful life significantly, or add new uses to your home.In computing capital gains, you can also exclude up to a maximum of $250,000 of the gain from the sale or $500,000 if you’re filing jointly.

A home can help you build a future worth looking forward to, or break your bank.run the numbers first before buying into the dream, First know your numbers, then you can buy into the dream.

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