Owning your own home is like having a savings account that you can live in. Every month, the payment you make on your mortgage increases your share in the home asset. Money paid for rent simply evaporates each month. Plus, research has shown that real estate has proven to deliver a highly reliable increase in value compared to other types of investing. If you’re renting, those reliable returns are going into your landlord’s pocket – not yours. When you add in the federal tax deductions for mortgage interest and real estate taxes, homeownership becomes an even more attractive idea.
There are, however, some advantages to renting. If you need to move frequently, if you’re not at a stage of your life where you want to commit to the responsibilities or costs of maintaining a home, or if your future income is extremely uncertain, renting may be the best option. Just don’t assume that renting is more affordable than owning. In fact, sometimes owning actually costs less.
Get An Edge – Get Pre-Approved First
If you’ve made the commitment to buy, the first step in any home purchase should be becoming preapproved. That means you know exactly how much you can afford to spend on your new home. And, you won’t waste time and energy falling in love with properties that are out of your price range.
A preapproval or commitment letter from an experienced mortgage professional is essential and also makes you a VIP Buyer in the eyes of real estate agents and sellers. You’ll have an edge over the competition because sellers will know that you’re a serious, committed buyer whose financing won’t fall apart.