First Time Home Buyer Benefits.
Are you a first time home buyer? Have you considered jumping onto the property ladder? Have you thought about giving up paying rent and owning your home instead?
There are so many reasons why many people are buying a home for the first time. Many buyers appreciate the advantages of home ownership but what are the some of these benefits of being a first time home buyer. It’s a great time to buy your first home. The markets are strong, interest rates are still low and the government has introduced significant programs that are geared to helping you take that big step.
What are the top 5 benefits to being a First Time Home Buyer?
1. Better Mortgage Choices
As a First Time Buyer, you are at an advantage because there are now so many programs available for your assistance. Some buyers are able to buy a first home with very little Down Payment, thanks to special programs such as the Government Insured FHA mortgages. When you are ready to buy a First home, sit down with a Loan Officer (your Realtor will be able to help you find one). A Mortgage Broker will walk you through all your financial information and arm you with the confidence you need when making an offer on a house you have found.
2. Down Payment Assistance
Yes, you read that right. There are First Time buyer Programs that will help you with your Down Payment and this can be used towards all those dreaded closing costs that can sometimes add up. Most States have these programs and your Mortgage Broker and Realtor will be able to get you most of the information you need. If you are tech savvy, do a simple search on the internet for Local Down Payment Programs, make a list of these, read up on them and sit with your Broker to go through anything that you dont understand. You will be surprised at how easy it is to buy a home.
For every payment made towards your mortgage, a fraction is paid towards the principal Loan and the rest towards the interest. Anything paid to the Principal means you are reducing the Loan amount. Therefore, you are gaining equity in your home (it’s a great way to save). Your mortgage payment may also be less than your current rental payment, another plus and another way to add to those savings.
4.Tax Benefits: Mortgage Interest Credit and Home Mortgage Interest deduction
Your Mortgage interest is considered a deductible when it’s time to file taxes. Make sure to discuss with a CPA on the Tax Benefits that are available to you. Mortgage interest Charges tend to be higher in the early years of a mortgage term, so this is a sure way of easing the burden.
5. Home owner
As a home owner, you tend to develop a sense of responsibility and belonging to your community / subdivision/neighborhood. Most neighborhoods have Homeowner associations and a lot of activities are planned by residents. You become a part of the community and take pride in home ownership.