3 Reasons to Consider Becoming a Homeowner

3 Reasons to Consider Becoming a Homeowner

If you have never owned a home before, you may think that it’s just not a possibility for you. Many people feel this way. Perhaps you grew up in rented homes, never dreaming one day that your name could be the one on the title. Perhaps you’ve lived through the 2007 and 2008 financial crash, which happened specifically because home loans were given to people who could not afford them.

You should be very careful about asking for a mortgage loan, but you may be surprised that you may be able to get one. You’ll have the best chances if you have regular employment, enough money for a down payment, and a good credit score. But sometimes you’ll be able to get by even without all of these, through some programs. An FHA loan, for example, may qualify you for a loan with only 3% down. It’s up to you to find out what is available to you, but soon enough you may be looking at Dripping Springs homes for sale.

Here are three reasons why home ownership may be the right decision for you.

It builds wealth. Every time you pay a landlord a rental check, that money is lost to you forever. But it doesn’t disappear. That money goes to the landlord, who uses it to pay for his mortgage. The rent isn’t the same price as the mortgage; it’s more. The extra money is profit that the landlord can use for any purpose. The money that he uses to pay off his mortgage doesn’t disappear either. It’s kept as equity. Equity is the amount of a house that the owner owns outright (the amount he has paid off from the bank). If the house was sold, the equity is the portion of the sale that would go to the owner. Obviously, having equity is a great thing, and you can only have it as an owner.

It builds security. Home ownership builds security, but not just because of equity. Homes are stable places to grow up and live. Unlike a rental property, where you’re never truly sure if you’ll be the even a few months down the line, no one can kick you out of your house unless you stop making the payments. This has an incredible effect on individuals and families.

It has good tax implications. Governments want homeowners, because these people are typically peaceful and pay their taxes. For this reason, the government provides several tax incentives to homeowners, including the fact that the interest on mortgage loans can be written off on annual taxes. Mortgage loan interest is also as low as any loan you’re going to find anywhere, specifically because the government wants to motivate people to buy homes with financial incentives.

There are many more reasons that home ownership is great, but these are three of the easiest to understand, and the most sensible when it comes to finance. Save and spend wisely and one day you can afford a home of your own to realize these and other personal benefits.