I'm Renting, Why Should I Buy A House?

There are many benefits to buying a home. Here are the top 6 reasons to buy a home now. 

1. Tax Benefits- The U.S. Tax Code allows homeowners to deduct interest that is paid on mortgages, property taxes, and even some of the costs to purchase a home. 

2. Appreciation - Historically, real estate has had long-term stable growth in value. According to the National Association of REALTORS® , the median home prices have increased 5.2% a year on average from the years 1972 to 2014. 

3. Equity- Money paid in rent is money that you never see again. Money paid into a mortgage has value by allowing you to build equity ownership interest in your name. 

4. Savings- The equity in your home can be used when you sell, or can be utilized through home equity loans. 

5. Predictability- Rents have been on the rise. As a homeowner with a fixed-rate mortgage you will not have to worry about your payments on your mortgage increasing*. *Keep in mind that as the value of your home raises the insurance and property taxes will likely rise. 

6. Freedom- Owning a home means that you are free to do what you want with it. You can decorate it, update it, add new appliances, paint it how you like, or even use it to generate income.

How Do I Know How Much I Can Afford?

Choosing a mortgage lender and consulting with them is the best was to determine how much you can afford when buying a home. A lender will look at your credit history, and income and will help you determine what payment and amount will be the best for you. 

Why Do I Need A Realtor to buy a home?

Buying a home is a process. A Realtor doesn't just find you a home, they act as your personal representative in a way that protects your best interest by following a strict code of ethics. Here is a breakdown of their duties:

• Realtors listen to your home needs and wants and then search for the property.

• They help you gain access to the house to view.

• They then help you to negotiate a contract between you and the seller.

• After the seller has accepted your offer a Realtor guides you on how to conduct inspections on the home by connecting you with their network of local professionals.

• They help get you to the closing table as efficiently as possible. 

Who Pays The Commission?

Typically the seller pays the commission for both the seller's agent and the buyer's agent. What does this mean for buyers? It means that an agent will work for you, typically with no money out of your pocket.

I Found The Perfect House Already, Can I Just Call The Listing Agent?

You can, but remember that the listing agent's first obligation is to their seller. They want to get the most money for their clients home. As a buyer, you want to get the best price on a home which can cause a conflict of interest for the selling agent. Having your own Realtor on your side is the best way to avoid a conflict of interest and insure that your best interests are being represented. 

What Are Closing Costs?

Closing costs are generally the costs associated with obtaining a loan to purchase a home. Examples of closing costs are the Loan Origination Fee, Title Insurance, and Tax and Insurance Impound Accounts. Your lender can help you determine exactly what your closing costs will be. 

What is Escrow?

Escrow is process that happens after a contract has been accepted. The paperwork and earnest money are sent to a title company who verifies the title. During this period the buyer inspects the property and the buyer and seller finalize the negotiations to close the sale. At the end of this period the ownership of the home is transferred from the seller to the buyer.