Advice for Buyers

Buying a home can be one of the most exciting and stressful times in your life.  You may be looking forward to a new beginning or a new locale or even all the new decorating possibilities within your new space.  At the same time, you find yourself worrying if you can really afford to buy a home.  Concerns about how to finance, how to negotiate with a seller, where to find movers, the schools in your new area, etcetera, can all add to your anxiety.  RELAX! With some research and effort you will feel confident throught the buying process.

FocalPoint Realty is your real estate partner guiding you through successful homeownership.  Let's get started!  Call us today (858) 349-3700 to get you closer toward achieving your goals.

Becoming a Home Owner 

As soon as you make the decision to buy a home, you need to take a close look at your financial situation.  Moving is a costly venture--you will need cash for a down payment and closing costs (which usually comprise approximately 5% of the home's ).  Furthermore, your monthly mortgage payments are often higher than what you may pay as a renter.  In order to secure a mortgage, a lender will need to know that you are making adequate income to meet your monthly payment.  In addition, they will also need to check your credit history.

Now that you're sure that you can afford to purchase a home, you'll be happy to learn that there are a number of major advantages to buying.  Here are a few of the factors to consider:

Long-Term Investment:  Buying a home is a long-term investment on your part.  Generally, your monthly mortgage payments will reamin the same as your property value goes up.  Homes typically appreciate an average of 5% a year.  Of course, this number can vary significantly depending on the region, the neighborhood, etc.  Still, every monthly payment brings you a little bit closer to owning your very own home in full.  Keep in mind that the initial mortgage payments pay mostly for the interest on the loan, while subsequent payments pay a greater part of the principle.
 

Tax Benefits:  Homeowners are entitled to a number of tax benefits.  As a homeowner, the IRS allows you to deduct all mortgage interest, providing you with a significant reduction on your annual tax bill.  Further, you may use your home equity to procure interest-deductible loans for home improvements, to finance a college education, or if you plan or retiring or purchasing a new home.  If you decide to sell your home, you may even qualify for a capital gains tax exemption, which means you migh not have to pay taxes on the sale. 

In effect, the government, helps to subsidize your purchase of a home.
 

Stable Monthly Housing Costs:  Buying a home also affords you the comfort of stable monthly housing costs.  While rents are often unpredictable and erratic, your mortgage is not.  Particularly with a fixed rate mortgage, you are guaranteed one monthly amount for fiften to thirty years.  When you consider how costly rents will probably be in thirty years, the choice seems obvious!

Let's get started! Call FocalPoint Realty today (858) 349-3700 to get you closer in achieving your dream home.