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Finance Center:
From Tenant to Homeowner/Answers
- What are the advantages of renting rather than buying?
Being a tenant is ideal when you intend on living in an area for only a short period of time, and/or you would prefer not to have the responsibilities associated with home ownership.
- What are the disadvantages of renting rather than buying?
The biggest disadvantage of renting is that you end up paying the landlord’s mortgage for him or her without gaining any equity of your own. You don’t have any tax advantages, and since your neighbors are also renters, there is little stability among the tenants around you.
- What are the advantages of owning one’s home?
Becoming a homeowner offers many advantages, some of which include a pride of ownership, tax deductions for mortgage interest and property taxes, ability to make improvements in your property, more privacy and space, and an increased sense of security.
- What are the disadvantages of home ownership?
If you plan on staying in an area for a relatively short period of time, or if you prefer not to tie up you money, this may not be the right time for you to consider buying a home.
- What’s my first step from tenant to homeowner?
Your first step is to find a Realtor® who has experience with first-time buyers and understands their needs and wants, their concerns, and their inexperience with real estate transactions.
- What are the steps in the home buying process?
Included in this packet is a list of all of the simple steps involved in buying a home. It sounds complicated, but the Realtor® really does handle all of the details.
- What should I be aware of before buying my first home?
Be certain to read all of the contract clauses very carefully. Even ask for a sample blank contract when you first begin looking at homes. Never be embarrassed to ask any questions about things you are not clear on such as costs, warranties, etc. It is important that you fully understand and are comfortable with each step of the process.
- What if I don’t have the money for the cash down payment?
There are many ways to find money for the down payment. Some of them include getting cash value for stocks, bonds, IRA’s, life insurance policies, 401K’s, retirement plans, and even gift letters from relatives.
- What will be different once I buy my first home?
You will have the experience of true pride of ownership. Your property is yours to change however you wish. You may want to add landscaping, paint, redecorate, and make various improvements inside and out. You may even find yourself becoming involved in community associations or subdivisions activities.
- Do you have any final advice?
It’s never too early to start the process. The younger you are when you buy your first house, the sooner you can begin to move up into the next home as your equity position improves, and through long term possible inflation.
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