Are you in the military or a veteran and considering buying a home? Buying a home is certainly one of the most exciting things you can do. It’s an investment and a place for you to grow with your family and loved ones.
The important thing is to not rush into it. Buying a home can be exciting, and you can feel eager to take the first step in the process immediately. We’re here to give you a few things to think about before you proceed. These ideas aren’t to dissuade you from buying a home but rather to make you more prepared.
Things to Consider Before Buying a Home
The first thing to consider is permanence. How long do you expect to remain in the same area? PCS can uproot your life from one state to another in the blink of an eye. Assignments are usually three years long. Flipping houses isn’t common anymore and certainly isn’t easy. If you’re fine with renting out your home while away for several years, then buying a home might be a good idea.
Secondly, consider questions about the property you’re buying. Do you want a house with a big lawn? Are you ready to take care of the lawn and provide the place with proper maintenance? Do you want to live in the suburbs?
When it comes to finances, you must make sure your credit reports look good. Having good credit reports can help you get better rates. Don’t rush into buying just because you found a good deal. A small percent difference in credit can save you thousands of dollars when buying a home.
Taking advantage of buying a home to lower your taxable income is well within the law and highly recommended. Mortgage interest is tax-deductible, and the money you pay can lower your taxable income. For example, those with a 60 thousand dollar income and pay 10 thousand dollars in interest and another 2 thousand dollars in property tax can lower their taxable income to around 48 thousand dollars.
Talk to your lender about what you can and can’t afford. Your lender can help you formulate a plan according to your annual income to help you live comfortably. You don’t want to spend too much money on our new home to the extent that living every month becomes difficult. At the same time, you don’t want to spend too little and end up investing in a small house that makes you feel like the trouble wasn’t worth it. Balance is key when deciding here.
Buying a home can be one of the best decisions you make in your life. These major decisions, however, should never be made quickly. You should talk to your loved ones, accountant, and lender about what would be best. Only after having everything in order and weighing all the pros and cons should you make a decision that can change your life to the better.
