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Why buy a home?
What can I afford? Which loan program do I qualify
for?
 Why
buy a home? A home is a valuable investment.
Along with buying a home, there comes a sense of
security and belonging. Buying a home is one of the
highest goals in life for many people. Owning your
home allows you to grow equity and create wealth for
your future. Also, the interest and taxes you pay on
your home are tax deductible in most cases.
Rent vs. Own – If
renting, how much do you pay in interest? 100% -
Your total rent payment goes to your landlord. You,
the renter, create “0” equity in the property. If
you are paying monthly rent of $800 a month over a
5-year period, you will have paid $48,000 to your
landlord with nothing to show for it. As a
home-owner, with the same monthly payment over the
same 5-year period, you would have created equity in
the property and would have recognized income tax
benefits.
Why be pre-approved before I look for a house?
When buying a home, there are several things to
consider. One, most realtors are now requiring a
pre-approval letter before they will show a house.
Two, being pre-approved, will allow you to have a
better understanding of your current financial
situation. Three, the seller recognizes you as a
qualified buyer. When you make an offer, the seller
will take the offer more seriously.
How much can I
afford? All lenders require housing costs to be
a certain percentage of gross monthly income. This
percentage varies from lender to lender. Give us a
call at Mortgage Investors of Knoxville and let our
loan expert help you determine the program best for
you. |
