When you start thinking about buying a home, it’s easy to let your emotions run the show. Before you know it, you’re stalking homes for sale on your home-browsing apps.
There is a clear process to buying a home and a timeline for each step that will make the transaction run smoothly.
There are no limit to how how much a landlord can raise rent. Most landlords raise rent every year with a 12 month lease term and sometimes more often when on a month to month. Fixed rate mortgage payments are always an option when buying a home you so your monthly payments stay the same throughout the loan term.
Over time, homes have always gained in value, so you can expect to get your investment back and typically much more when you sell your home.
Money you put down and pay into a mortgage to build equity can be made available to you in the form of a loan or a home equity line of credit (HELOC).
Selling your primary residence can result in capital gains. The capital gains tax exclusion allows homeowners to reduce capital gains tax when they sell a primary residence.
Home owners are also eligible for energy efficiency tax credits. The government offers a tax credit to homeowners who make energy-efficient improvements to the home.
One of the largest tax benefits of homeownership is the mortgage interest deduction. A home mortgage interest deduction allows taxpayers who own their homes to reduce their taxable income by the amount of interest paid on the loan which is secured by their principal residence. To claim the mortgage interest deduction, you need to itemize your deductions on your tax return and report the amount of mortgage interest you paid during the year.
Another major tax benefit of home ownership is the property tax deduction. A property tax deduction allows you to deduct the property taxes you paid during the tax year on your tax return. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
If you have an office in your home, you're allowed to deduct the cost of that office from your taxable income. The IRS requires that you use your home office for regular and exclusive business use to qualify for a deduction. To qualify for a home office deduction, you must use your home office space regularly and exclusively for business.
A Home Equity Line of Credit (HELOC) offers homeowners a flexible way to borrow funds. This can be used for a variety of purposes, like debt consolidations, home renovations and education expenses. In some cases, interest on a home equity loan is tax-deductible. At this time, qualified home equity loan interest is tax deductible through 2026.
Mortgage points are fees you pay to a lender when closing on a loan to secure a lower interest rate on your mortgage. One point is equal to 1% of your total mortgage amount. Paying mortgage points can lower your interest rate, resulting in reduced monthly mortgage payments. Mortgage points are tax-deductible in the year you pay them, though the deductions are subject to certain restrictions and limitations.
A home is an asset. If you rent your landlord benefits from appreciation. A home gives you inflation protection against rent increases and when you pay your mortgage, you are building equity each month making portions of your mortgage payment tax deductible.
• $2,500 monthly
• 100% Goes to landlord
• No tax Deduction: $2,500 day one
• No Inflation Protection
• No Appreciation: EVER!
• $3,000 Monthly
• - $240 Principal Deduction
• - $450 Tax Deduction: - $2,240 day 1
• Increased Slower Than Rent
• $210,000 Appreciation in 10 years
Your credit score is an important part of your financial picture. Lenders combine your credit score with the information in your credit report to assess your risk as a borrower. Higher credit scores get lower rates and your debt to income ratio plays an important role.
Being pre-approved will give you insight on where you stand financially and give you an edge when bidding against other buyers. Getting a pre-approved is fast, easy, free and only takes a quick phone call and doesn't 'ding your credit score.
With my 20 years in the real estate I am familiar with the real estate process on both the buy-side and the sell-side and have experienced in building and investing. As a Realtor, I must adhere to a strict code of ethics, which is based on professionalism and protecting my clients. I will guide you through the dozens of forms, disclosures, and documents and avoid delays or costly mistakes in addition to sharing my connection to get the job done right and on time!
I will walk you through the process and help prepare you for each step and what to expect and the time frame for each phase of the transaction. Share your wants and needs in a home. From the type of home, location of the neighborhood, and any interior and exterior amenities and features you require and I will find the perfect home for you.