Buying your first home is an exciting experience. It’s a milestone, and for many people, one of their first serious financial investments. In a post last year, we discussed the importance of carefully evaluating your finances and lifestyle to make sure that buying a home is right for you. In this post, we’ll be reviewing common questions and advice for first-time homebuyers.
One of the most frequently asked questions that individuals have who are considering buying a home, is, “why should I buy, rather than rent?” Aside from having something that’s “all yours”, a home is an investment. When you rent, your money is going towards a landlord’s income and nothing else. However, according to sources from USA.gov, when you own your home you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This saves you money each year, since the interest you pay will make up most of your monthly payment.
Another common question from potential homebuyers is, “Can I become a homebuyer even if I have or I’ve had bad credit, and don’t have much for a down-payment?” The good news is, there is help! You might be a good candidate for one of the federal mortgage programs available. You may also want to contact your local government to see if there is any local home buying programs that could work for you.
Even if you won’t need federal assistance, it’s still wise to be aware of how much money you will need to come up with to buy a home. This will depend on many factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs; earnest money, the down payment, and the closing costs. Hiring a real estate broker could help you as they will assist you in figuring out the price range you can afford.
Once you do decide to buy a home, the next step is to purchase comprehensive Connecticut Home Insurance coverage to protect your investment. Byrnes Agency can help you with everything from determining the preferred amount of personal liability coverage to include in your policy to extended replacement cost coverage to cover the full value of your personal property. Contact us today for more information about out Connecticut homeowners insurance policies.