There are many decisions that must be made before purchasing a home. In fact, it may seem downright overwhelming to think of all the decisions that must be made. However, simply by answering a number of questions you can develop the strategies you need to move forward with your Spring Branch home purchase:

• Am I able to move/Do I really want to move? Before you actually make the decision to buy, it is always best to decide if moving is actually the right decision for you. Are you in a good financial position to buy?  Is it feasible to buy at this time?  Have you talked with your family to make sure everyone is on the same page? Asking yourself whether you are realistically able to move or ready to move may seem like a no-brainer, but it pays to take a moment or two and really decide why you want to move and if it is a realistic endeavor at this time.
• Do I plan on staying in the same place for the next, few years? Buying a Spring Branch property only makes financial sense if you plan on staying put for at least the next five years because the financial benefits you will get from owning a home will not outweigh the cost of moving and purchasing a new home. Therefore, it is best to ask yourself whether you plan on switching jobs or relocating, or whether you have an interest in living in another area or city. If you feel you and your family are settled and you are looking to spend the upcoming years in the same area, then it probably makes good, financial sense to purchase a home.
• How do I feel about home improvements and maintenance? One of the biggest questions many first-time home buyers ask themselves is: Am I prepared to take on maintaining a home? Unlike an apartment, a homeowner is responsible for all maintenance and upkeep which, for many, is simply not something they want to take on. Also keep in mind that maintaining, repairing and updating a home can cost quite a bit of money – money that would come out of your household budget, so it pays to consider these added expenses.

In addition to providing you with a break on your income taxes, through your mortgage interest and your property taxes, and providing you with a steady housing payment for the next 20 or 30 years, owning a home has other financial incentives – incentives you may have not considered!

• Owning a home allows you to build equity for future use!

Building equity in your Terrell Hills home is one of the biggest reasons people choose buying over renting. Even if you do very little to improve your home, it will likely increase in value over the years based on market conditions. The equity in your home is like a savings account that builds up without you even adding anything to it! In other words, the equity in your home is like your own personal savings account; an account where you can withdraw money for any number of reasons.

You can access the equity in your home, without selling it, by simply taking out either a home equity line of credit or a home equity loan. Many people take out home equity loans or lines of credit to: repair, update or renovate their home; to pay off high-interest rate debts; to send their children to college; to purchase a vehicle; or to simply take a nice vacation! The truth is that home equity is an important tool for homeowners that can even be used to get themselves out of financial trouble or get them through financial hardships. Whatever you choose to do with the equity in your home is your choice, thereby making the process of building equity one of the most important aspects of owning a home.

• Owning a home keeps your money where it belongs – in your pocket!

You’ve heard it before, but it bears repeating: passing rent along to a landlord is like throwing your hard-earned money down the drain. There are, of course, people who benefit from renting, such as those who move often or are not financially secure; but for most individuals, it just pays to keep money where it belongs: in their pocket! Although you pay mortgage to a lender, you are building equity at the same time, thereby putting money back into your investment.

Before you begin looking at homes in your neighborhood or dreaming about the lovely Cape Cod on the corner, you must first find out whether owning a home is realistic at this point in your life. And to do this, you need to talk to a professional and get yourself preapproved for a home loan.

A mortgage preapproval, which is done through a lender, is like a green light for buying your first home. It will determine whether your credit and income are sufficient for obtaining a home loan, and it will provide you with an accurate amount for which you can spend on a home. In short, a mortgage preapproval will arm you with the information you need to purchase a home.

A mortgage preapproval, in addition to providing you with the information necessary for purchasing a Cordillera Ranch property, is important for a number of other reasons:

• Many real estate agents will only work with buyers who are preapproved for a mortgage because, in simplest terms, they don’t want to waste their time showing a buyer a home, only to find out they can’t get approved for a loan of that size, or they cannot get approved for a loan at all. Therefore, one of the first things a realtor will ask you before working with you is if you have been preapproved for a mortgage.
• Many sellers and seller’s agents do not want to show homes to buyers who have not been preapproved for a mortgage – Again, sellers and seller’s agents only want to spend time with buyers who are capable of buying their home.
• A mortgage preapproval shows everyone you are a serious buyer – If you submit an offer on a home without a mortgage preapproval, chances are it will be declined. Sellers want to see that you’ve already done your homework and that you’re ready to come to the table with a serious offer; and a mortgage preapproval shows you’re serious.
• A mortgage preapproval may give you more bargaining and negotiating power – If you put in an offer on a Cordillera Ranch home with a mortgage preapproval, and another buyer, without a mortgage preapproval, puts in an offer, it is more like the seller will entertain and accept your offer over the buyer without the preapproval. This is because your offer comes with an insurance policy that says the seller can comfortably accept your offer without fear of the sale not going through.

Although the real estate market has experienced its share of difficulties and struggles over the past, three years, it is still important to realize that owning a Dominion property still continues to be a smart investment.

Here are the top reasons why buying a home is still a great investment:

1. You pay less income tax – Because your home payments go directly to your lender for your mortgage (instead of to your landlord for rent payments), you can save thousands of dollars in income tax each year. This is because homeowners can deduct the interest of their mortgage payments, as well as their property taxes, when they file their federal income tax return each year. In addition to a single-family home, consider that purchasing a condo or even a mobile home affords you the same tax breaks each year.
2. Your investment will increase in value over time – Although the housing bubble across the country burst (and in a big way) a few years ago, history shows that, over time, homes increase steadily in value, making them an excellent investment. Keep in mind, however, that the ultimate determination of your home’s ability to increase in value is the location of the home, so do your homework and pay attention to property values.
3. The money you make on your investment is tax-free – Now, what other investment can offer you that? Consider you bought a home ten years ago for $200,000 and you sold it last week for $300,000; you just cleared $100,000, tax free! Federal law states that homeowners can make up to a $250,000 profit on their home, tax-free (couples who file jointly can make up to a $500,000 profit).
4. Your home loan payment for your Dominion property is something that will never increase – Provided you have taken out a fixed home loan, you can expect your home payment to be the same in 30 years as it is today. This allows homeowners to be able to budget their household, both now and in the future. Consider rent payments, on the other hand: You certainly cannot depend on them staying the same!