St Petersburg- Clearwater - Tampa Bay FL Real Estate
Tyson Rollins

Tips for Buyers

Advantages of Owning a Home “The American Dream”

While some people choose the flexibility of renting and being somewhat free of routine maintenance while having the ability to move often, many choose ownership for other reasons. It would be nice to say that the main reason for owning a home is the pride of home ownership that can be experienced.   All things considered,  from adding your own personal touches to build lasting lifetime memories.  On the other hand, some reasons are purely economical and there are clear financial advantages.

1st thing “ To Do”

Get approved prior to looking and attempting to an offer on a house. In any market, it’s not enough these days to be merely pre-approved for a loan.   Getting a mortgage commitment is essential when making an offer and true indication to the seller that you’re serious about buying a home.  Make sure that your must have factors (neighborhood, beds, baths, garage, pool, dock, boat lift) are clear with the spouse or partner prior to viewing a home.  Make sure you’re comfortable with the neighborhood, schools and HOA. (Check my St Pete, FL Local Resources  for information) Whenever possible, try to always view the property together. You won’t want to miss out on an opportunity because you had to schedule a 2nd showing for your significant other.  DOWN PAYMENT ASSISTANCE AVAILABLE ( RESTRICTIONS APPLY)

Building Equity

The difference between what you owe on your home and its value is called equity. In the early years of a home mortgage, most of each payment will go toward the loan interest, but later it will gradually go more and more toward your principal balance (what you owe). Through the years your payments will reduce this balance, thus raising your equity. Plus, if your home increases in value, your equity will rise even more. Your equity is like a savings account and it could prove very important for future needs such as a retirement plan, or major purchases.

Payment Stability

Unlike renting where payments can increase over the years, a fixed-rate mortgage payment will remain the same for the term of your loan. Other types of loans could vary in the structure of payments and there always could be slight adjustments for taxes and insurance, but owning a home can result in being able to depend on stable payments for years to come. During times of inflation when rent goes up and home values rise, renters end up paying more each month while home owners increase their equity as they make the same payment.

Tax Deduction

By law, you can deduct mortgage interest and property taxes from your U.S. Federal Income Tax and from some state income taxes. This results in significant tax savings, especially in the early years of a mortgage when interest payments are higher. And you may find the tax savings alone makes it less expensive to buy than to rent.

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