Are You Ready for Homeownership?

Buying a home may be the largest investment you’ll ever make. It’s an exciting milestone, but it is also a major financial responsibility to take on.

To prepare for homeownership, you should understand the financial benefits and challenges that homeowners face. Getting a handle on your personal finances and developing a solid financial plan will help you make an informed decision about when, and if, homeownership is right for you.

Financial benefits to owning a home

• Wealth building 
  Making monthly payments reduces your loan principal and builds equity.
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• Tax savings 
  Interest paid on your mortgage loan may be tax deductible.
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• Stable housing cost 
  If you have a fixed-interest loan, your payments (interest and principal) will remain the same for the life of the loan.
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• Improve credit 
  Making monthly payments creates a consistent payment history to help improve your credit.

Financial challenges to being a homeowner

• Higher housing cost 
  Mortgage payments and financial responsibilities such as maintenance, repairs, insurance and property taxes can be much more than monthly rent payments.
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• Decreased mobility 
  As a homeowner, it’s not easy to pick up and move. You have to decide what you want to do with the property you own and be ready to face the financial costs of selling and moving.
  
  
• Potential for foreclosure
  ​If you are unable to make your mortgage payments, the property could be repossessed by the lender. Creating and sticking to a savings and spending plan can help you avoid this.
  
  

Learn more about the homebuying process by signing up for our free homebuyer class.