Purchasing a home can be very exciting, but it can also come with some uncertainty. Before you jump into a contract and commitment, consider a few of these questions!
What are the benefits of buying a home?
When you purchase a home, it is an investment. You’ll never see money from a monthly rent check again, but when you make payments on a mortgage, you are building equity. Plus, when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes.* You may also enjoy more freedom to do what you want, whether it’s painting the walls or adding an outdoor space you’ve always wanted.
How much do you want to pay?
It’s extremely important to create a budget before determining how much you want to pay for a home. Besides your monthly mortgage payment, you’ll need to cover three costs up front: earnest money (the deposit you make on the home when you submit your offer), a down payment (a percentage of the cost of the home you must pay when you go to settlement), and closing costs (the costs related to processing the paperwork to buy the home).
How much do you qualify for?
To figure out your loan potential, you can begin with a free online calculator
. You can also call a FORUM Mortgage Specialist at 317.558.6160 or 866.367.8600 to see how much you qualify for and to get answers to other questions.
What additional costs should you consider?
When considering purchasing a house, make sure to take into account the cost of monthly utilities, any homeowner association dues, property taxes, unexpected maintenance expenses, lawn care costs, and home insurance.
What are your long-term and short-term plans?
When determining if it’s the right time to buy a home, it’s important to consider your long and short-term plans. Do you foresee yourself moving to another city or state in the next few years? Do you travel frequently? Do you want to control your housing destiny or would you prefer to have a landlord that can take care of issues when needed?
As you consider these questions and more, make sure you utilize available research and resources. FORUM offers various free resources on first-time home buying. Click here
for a free First Time Home Buyer Guide. If you prefer a different format, we also provide short video clips on YouTube
. You can also take advantage of FORUM’s Home Buyer Resource Center
and our free Mortgage Calculators
*The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation.
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Categories: Finances, Homeownership, Planning