Home Buyer's Guide
For additional information about purchasing a home, please contact a Mortgage Specialist.
Download our Homebuyer’s Guide to Financing (pdf).
Homeownership is about security, comfort, and fulfilling the American dream. The sense of community that comes with putting down roots in a place of your own, the security of owning the roof over your head, the opportunity for financial growth--all these accompany the choice to become a homeowner. But buying a home is also the single largest investment most people ever make. Along with all the benefits of homeownership comes the responsibility to manage that investment wisely.
The Benefits of Homeownership
The rewards of owning your own home include many benefits unavailable to renters. Among other things, homeownership allows you to:
- Start building wealth: Making a mortgage payment every month builds up your equity stake in your home, contributing to your long-term savings and helping you solidify your financial future.
- Reduce your tax burden: The interest you pay on your mortgage is usually tax-deductible, which can lead to significant tax savings--especially in the early years of the mortgage term, when most of your monthly payments go toward interest. Make sure you consult your tax advisor about the deductibility of interest.
- Build your credit history: Timely mortgage payments can contribute to a positive credit history.
- Eliminate landlord hassles: You'll no longer have to fear non-renewed leases and rent increases.
- Make the house your own: Aside from zoning rules, Homeowner's Association requirements, and local building codes, you'll be free to decorate, remodel, and renovate as you wish.
Responsibilities of Homeownership
Before deciding to buy a home, consider the responsibilities that will accompany your purchase. You will most likely have to make some adjustments to account for the following:
- Additional financial responsibility: Whether buying is more costly than renting depends on your individual circumstances. As a renter, some or all of your utilities may have been paid for, but they will now be solely your responsibility. You'll also be responsible for property taxes and homeowner's insurance in addition to your loan.
- Maintenance and repairs: Maintaining your property will be up to you, not the landlord.
- Less mobility: Unlike having a lease where you can move with minimal notice, moving when you own a home is more complicated since you're responsible for ensuring the mortgage gets paid.
- Depreciation: Real estate often increases in value over time, but not always. Owning a home means facing the risk that its value will depreciate.
Beyond the financial benefits, the personal rewards of homeownership can be tremendous--as long as you prepare for the responsibilities that come along with it, and choose a home and a mortgage that are well-suited to your needs.