If you read our original post about the biggest first-time homebuyer myth, then you already know that you don’t need a 20% down payment to secure your first home. In fact, you need to put down just 3.5%, which makes buying a home a lot more affordable!
Here are a couple other things to consider:
- Buying a home results in tax savings – big tax savings! The biggest tax break typically comes in the form of interest paid on your mortgage. Unfortunately, the majority of each month’s mortgage payment will go towards interest, but there is a silver lining: you’ll get to deduct it at the end of the year. Be sure to consult a tax specialist to take advantage of all your homeowner-related tax breaks.
- Consider the location (and especially the school district)! Even if you don’t have kids or don’t plan on them, we strongly encourage all of our buyers to consider the home’s neighborhoods and public school system. Not only will these homes be easier to sell one day, but they’re also far less likely to lose their value. Plus, a nice school district often translates into a nice place to live!
- When determining your budget, consider real estate taxes. It’s not exactly the most exciting subject, but real estate taxes are a game-changer when it comes to your home buying budget. Instead of considering your budget in terms of a home’s price (such as a $200,000 home), it might be more helpful to think about a monthly payment. The monthly cost will be greatly affected by the taxes, and its how a lender will determine your approval. Some areas, like many parts of Delaware County, have relatively high taxes, whereas other neighborhoods, like Upper Bucks, are relatively inexpensive.