Buying your first home is a decision that can stick with you a lifetime. Not only is it a financial investment, it is also a lifestyle change. You should consider the following financial and lifestyle factors before buying your first home. According to First National Bank here are a few items you just may want to consider.
Financial Factors Current income and expenses: Before committing yourself to a mortgage payment for the next 30 years, you should evaluate your current financial situation. Detail a list of your current income sources, as well as all expenses. Determine how much money you feel comfortable with allotting for a mortgage payment. This will also help you determine what price range you can afford. You should also consider expenses that come along with purchasing a home, such as earnest money, a down payment and closing costs.
- Tax advantages: New homes come with the possibility of tax advantages. Those possible advantages include deductions for mortgage interest, local property taxes and home equity interest (if you borrow against your home). Plus today's laws allow for savings on capital gains if you sell. As with any tax related issue it is best to discuss this with your tax advisor for all the little details. But if your rent payment is lower than a mortgage payment and you are comfortable living where you are, you can invest those funds and possibly receive the same monetary advantages.
- Maintenance and repair costs: If you are purchasing an existing home, it may involve maintenance and repair costs, both in the short-term and long-term. Ensure that you have a savings plan ready to handle any kinds of unexpected expenses that will be required to continue safely and comfortably living in your new home.
Lifestyle Factors:
- Home and yard upkeep: Maintaining the inside and outside of a new home may be a pro or a con, depending on your situation. If you enjoy landscaping, home maintenance, and decorating, owning your own home gives you the flexibility to make a house your home. If you lack the time, skills, or money to keep up with everything a house entails, you may want to consider continuing to rent.
- Future relocation plans: Consider how long you plan to live in an area. If your job requires frequent relocation or you are planning on moving to a new area within the next few years, renting may make more sense than buying, and having to quickly sell a home in a tough housing market.
Whatever choice you decide is best for you and your family, First National is here to help you through the entire home-buying process. Through the mortgage pre-approval to closing on your new home, First National Bank's mortgage loan officers will guide you along the way. For more information on our variety of mortgage products that will fit your needs, contact us today at 877.687.5626 or visit firstnational.com/mortgage
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