A few reasons why buying a home and establishing equity is a smart financial move
One of the main benefits of buying property instead of renting is gaining equity. Equity is how much of the property you've paid for and own. The longer you stay in a house, and subsequently, the more mortgage payments you make, the more equity you have.
Here are a few reasons buying a home and establishing equity is often a smart financial move:
- You're investing in your future. Monthly mortgage payments typically benefit you in the long run as you slowly gain more ownership over a home. When the time comes, you can sell and hopefully get a return on your investment. As a renter, on the other hand, your monthly payments go to someone else and you don't reap any of the benefits.
- You can increase resale value and make a profit. As a homeowner, you can make any changes you want to the property. Investing in even the smallest home improvement projects over the years could increase the home's value.
- You can use your equity as collateral. If you're short on money, you may be able to borrow against your home equity at fairly reasonable interest rates. Common uses of home equity loans include performing home improvement projects, consolidating other debt and covering college expenses.
If you think it's time to make the move from renter to homeowner, give me a call today, and we can discuss the home buying process.
The home buying process, even if you've done it before, can be a bit of a roller coaster - exciting and a little scary at the same time! Part of my job is to be your guide through this experience, and make it easy, fun, and stress-free.
Here are the three basic steps of the home buying process - obviously there's more to it than this, but this will give you a basic road map of what to expect.
1. Set your home search to match your "must-haves" and your price range. Create unique searches identifying what type of home you would like to own, what location, what special features and benefits you need and would enjoy.
2. Visit homes in person.
You can visit open houses. Hire a real estate agent to help you see homes
and walk you through the buying process from start to finish.
3. Make an offer. Work with a lender to get pre-approved for a loan. After you get pre-approved for a home loan, make an offer. A professional real estate agent can help you strategize your office to get your offer considered by the seller.
Buying a home is a huge milestone in your life. Work with a professional to guide you through this life changing journey.