Unlike a monthly rental payment, the money that you put toward a mortgage is a long-term investment, making home ownership a wise financial decision for many. If you’re a current renter who’s thinking about diving into homeownership, there are a few things you should do before you begin the home buying process.
Prepare for Additional Expenses
Start by considering some of the added costs you’ll incur by owning a home. While many buyers are pleasantly surprised to learn that they can afford a much larger and nicer home for the same amount (or less) than they’re paying in rent, there are some other costs to factor in. From home insurance and property tax to maintenance/repair costs and HOA dues, the fees can add up. You’ll want to make sure you’re prepared for these and other possible additional expenses.
Check Your Credit Score
Your credit score will have a major impact not only on your ability to get approved for a home loan, but the interest rate for which you’re approved. With that in mind, it’s a good idea to check your credit score before you begin the pre-approval process to see where you stand. You should also take some time to scrutinize your credit report and make sure there are no errors that need to be disputed before you continue.
Explore Home Buyer Tax Credits
Make sure you’re prepared to take advantage of all the tax credits and other incentives available to you. Most buyers are eligible for a deduction on their mortgage interest paid, as well as property taxes paid throughout the year. If you plan on doing any renovations in your home, you may be eligible for some tax breaks there, too. Other first-time home buyer benefits can include a lower downpayment, a lower interest rate, and limited fees in other areas.
Consider Lawn Care Commitments
Finally, consider the amount of added time and effort you’ll need to put into maintaining a yard and property if you end up buying a single-family home or other residence with a yard. You may want to consider a property without a yard (such as a condo) or a property with just a small yard that will be easier and less time-consuming to maintain.
Ready to dive into homeownership? Need help finding your dream home in the Greenville area? Let our team professionals at The Parker Group help you through the process! We are experts in the Greenville area. Whether you want to live in the heart of downtown or in one of the neighborhoods surrounding Greenville, we will help you find your dream home!