Is Home Ownership Right For You?
Purchasing a new home can lend lucrative financial benefits such
as reducing your income tax liability and building your financial
net worth. One advantage of owning is the opportunity to deduct
mortgage interest and property taxes on your tax return. To
determine if renting vs. buying is better for your situation you’ll
need to weigh the pro’s and cons. Consulting your tax professional
is always recommended.
What Can I Afford?
An in depth evaluation of your budget is a great starting point for
what you can comfortably afford. Talk with your lender for more
details.
Should I Check My Own Credit Report?
Yes, be sure to obtain a copy of your credit report several months
before looking for a new home. This will allow you to identify and
correct any possible issues. Preventative measures will save you
time.
How Much Money Do I Need?
Enough to cover your down payment, closing and moving related
costs with a generous reserve for unexpected expenses.
Down Payment Requirements
The amount of money you will be required to put down on
your new home can vary depending on what type of loan you
would like to secure. The amount can range from 3% -20%.
Other sources you can use
• 401(
k)
•
IRA accounts have provisions for first-time home buyers.
•
A monetary gift from a relative
Saving for a Down Payment
Depositing in a monthly savings account will not only help
you obtain more money for your down payment but it will also
get you accustomed to a monthly mortgage. Discover Bank’s
AutoSavers Plan can help you start saving today.
Sometimes, sellers will offer to assist with a buyer’s closing
costs, effectively rolling them into the mortgage. Your
REALTOR
®
can advise you on this.
“
It’s all about the service”