How to Buy Your Very First Home

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Purchasing a home might be the biggest single purchase you’ll ever make in your life, so it’s important to know your numbers before you sign 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.These days, a down payment is about 20% of the purchase price. Learn about Killearn Estates in beautiful Tallahassee FL here!

Your Credit Score

Your credit score has an important role to play in obtaining low-interest financing.Review your credit report and iron out discrepancies before facing your lender.

Keeping it Small

Accumulating new debt before financing a home can affect your debt-to-income ratio and how much you can get from a lender.Hence, don’t buy a car or any big-ticket item on credit if you have plans of buying a home in the near future.

Doing Your Homework

Save cash and time by shopping around–there are loads of websites that offer help with this– to find out which lenders are offering the lowest 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 become into a money pit, costing the owner more than intended.What happens when your street floods or your plumbing needs a major fix?Before the purchase, hire a trustworthy home inspector, and get ready for the unexpected with cash allotted for the unforeseen.

 

Energy Tax Credits

To get energy tax credits, go for qualifying 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 typically can’t remove home renovations on your yearly tax return, the good news is that these costs can help you should you decide to sell your home.Just add them to your adjusted cost basis – more basis, less capital gain.To qualify as a deduction, the renovation should add materially to your home’s value, extend your home’s useful life considerably, or give your home new uses.When calculating capital gains, you may as well exclude a maximum of $250,000 of the gain from the sale or, if you’re filing jointly, up to $500,000.

A home can help you build a  future  worth looking forward to, or break your bank.Don’t buy into the dream without running the numbers. Know where to look at all the houses for sale in Killearn Estates here!

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