As you already know, there are some home buying mistakes you can easily avoid with the guidance of your Dream Town agent. If you didn’t read Wednesday’s entry – go back and catch up – because you don’t want to be taken off guard by any of these costly mistakes.
One misconception many people have is that you need a 20 percent down payment in order to buy a home. This is untrue. There are many different payment options available that accommodate all sorts of financial situations.
You can expect to pay a minimum three to five percent down payment with many loans today. However, 100% financing loans are also offered where you pay no down payment at all. Your Dream Town buyer’s representative can go over the various financing opportunities with you so you can decide which option is best for you.
Assuming that renting is more financially feasible than owning because it costs less is a common perception held by many. You have to look at the big picture on this one. Choosing to rent may seem like a less expensive way to go, but where is all that rent money going? Not toward your equity – that’s for sure.
When you own your home, it is a long-term investment and the mortgage payments are helping you build cash equity. Also, most homes appreciate over time, which means you will profit from the sale of your home in the future. Tax deductions and exemptions are another benefit to owning. The interest on your mortgage loan and property taxes is tax deductible, and any profit you make on selling you home is tax free up to $200,000.
More mistakes to steer clear of next time