More space. A nicer environment. Being able to paint the walls any color you’d like. Those are just a few of the more obvious benefits of home ownership.

When you buy a home, you may also enjoy several financial benefits that could potentially help your financial situation for the rest of your life:

* Interest Deductions

You may be able to deduct the interest on your home loan, as well as the federal (and sometimes, state) real estate taxes you pay annually. Be sure to consult your tax advisor. Because of this tax advantage, it may actually be cheaper to own than rent.

* Equity

If the value of your property increases as you pay down your mortgage, you build equity that can be used to finance other major purchases, or as a down payment on a future home.

* Protection Against Inflation

Home ownership could help you counteract rising inflation. Although past performance cannot guarantee future trends, real estate has historically appreciated at a higher rate than inflation in most regions.

The Duncan Team understands that buying a home is one of the most important personal and financial decisions that you will make in your life. This is why we are committed to guiding you step-by-step, answering all your questions along the way, to ensure that your experience is as pleasant and successful as possible. Read on and you’ll see that realizing your dream of having your own home is easier than what you perhaps imagine.

Be Prepared

Information is Essential

Now that you’ve decided to investigate home ownership, the best way to approach your purchase is as an educated consumer. It is very important to educate yourself on the process and requirements before you begin looking for a home. For example, many people believe that renting is cheaper than buying, or that you have to be a Permanent Resident of the United States or have an exorbitant down payment to buy a house. The reality is that you only need a work permit, and in some cases, the starter costs of renting may almost be the same as that of a down payment for a house. There are also a variety of 100% financing options available.

Choosing to buy a home is one of the most important decisions of your life and should not be taken lightly. That’s why it is in your best interest to associate yourself with a good REALTOR who has experience, who works in the area where you would like to live, and with whom you feel comfortable. During your first meeting, a REALTOR will typically talk to you about the neighborhood where you want to live and the prices of the homes, as well as the transportation, schools and surrounding areas. Your REALTOR can also assist you in the process of talking with a mortgage representative to potentially secure a “mortgage pre-approval.”

In todays market it is a must is to get pre-approved for a mortgage before looking for your home because you will know the amount of money you will have to spend, and it will be easier for you to calculate how much you can afford to pay monthly. It also makes a difference in how a seller percieves your ability to actually close the deal. Sellers want to see that the postential buyer is knowledgeable about how the process should work and that they can indeed close the deal.

Your Savings

If you will be using financing that requires a down paymentIt is important to develop a financial plan so that you not only save money for the down payment, (if needed) but for other costs that will come along later like the credit check, the mortgage application and the closing. Your Credit Having an established credit history is an important step in a smooth home buying process. Build a good credit history by trying to diversify how you pay for things and don’t pay for everything in cash. Pay your bills on time, limit your debt, reduce the amount of credit cards you have and use them responsibly. It is also important to review your credit report - a record of past and current debt that states when, how and if you paid. Make sure that the information contained in your credit report is accurate. The better your credit history, the better your credit score; and the better your credit score, the higher the trust level of the lender, which may translate into more mortgage options for you.

A pre-approval is a simple calculation that tells you the amount you’ll be able to finance through a loan and what your monthly payment will be. A pre-approval also provides the “seller” some comfort that you have the financial means to purchase their home. Once you know the amount of money the bank will lend you, you will need to determine how much cash you should save for the down payment. This will help define the types of homes that are within your budget. Bear in mind that your monthly costs not only consist of mortgage payments, but will also include at a minimum real estate taxes, homeowner’s insurance and utilities. Securing mortgage financing is an important step in the real estate purchase process. There are lots of options to explore to find the fit that’s right for you.