If you're considering home ownership, here's what you should know
It’s your move
If you’re considering home ownership, here’s what you should know:
Get prepared for the costs involved
If you can put down at least 20% of the cost of the home, you could avoid having to pay costly private mortgage insurance (PMI).
Fees & expenses
You’ll need to keep some extra cash on hand for things like closing costs, moving expenses, etc.
Remember to put money into an emergency fund for unexpected repairs like a broken water heater, leaky faucet and general upkeep.
Down payment options
If you don’t have 20% to put down on a home, that doesn’t mean you can’t buy. You could qualify for a conventional mortgage with less than 20% down and pay PMI, or you can check into down payment assistance programs and FHA mortgage options.
Keep the benefits in mind
Change the paint color, knock down a wall to open up the living area or build an addition—it’s your home, and you’re the boss.
It’s possible to save money on your taxes by deducting your interest payments come tax time. Talk with your tax professional for details.
You can increase your home’s value with a little elbow grease and manual labor—something you can’t do with a rental.
Housing market risks
Keep in mind that you could lose equity based on several market conditions, including the economy overall. Before you buy, discuss potential risks with your lender or an advisor.
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