Buying a Home: Moving from Rental to Ownership

Many people may not realize that ownership of their own home doesn't have to be so far in the future. Deciding if you're ready to buy a home is a big step for most everyone. Some of the benefits of owning your own home may rather then renting may help in taking that first big step.

Why should you consider buying? A big advantage of owning a home is unlike rent which disappears each month, a mortgage payment goes toward the equity in the home. Home equity works like an emergency line of credit - allowing you to tap into it if and when you need to make home improvements, pay off higher interest bills, or when faced with unexpected expenses like medical costs. Renting doesn't allow for that kind of added security.

Also after a period of time if you decide to move and sale your home the equity comes back because of that home investment. That equity can be applied toward your next home as a down payment. Unlike renting an apartment or house where once you've moved out your often times lucky to even get the deposit back.

With property values on the rise at a rate faster than most interest-bearing savings accounts this makes buying a home a great investment. Also, while rents continue heading skyward a mortgage payment will be consistent. This will give you the added security of stability from having a mortgage rather then a rental. This allows you to stabilize your monthly expenses - putting money back into your own pocket.

If this isn't enough reason to buy a home then consider that interest paid on your mortgage loan is tax deductible. This can mean huge savings on your taxes. This is especially true in the early stages of home ownership, when you're paying the most interest.

When renting an apartment or house you are limited to finding what a landlord is offering. However when purchasing a home you set the limits by deciding what kind of house your looking for to own. Picking the right house for you and your family can be harder then deciding to buy in the first place.

Renting is generally short term - meaning that at some point in time you expect to find some place else to rent that better fits within your budget. Owning a home is a long term commitment that requires many different factors in finding the right home for you.

Before looking at homes take time to sit down and make a list of the characteristics you are looking for in a home. Develop a rank of what is important to find within the home your looking to buy - from most to least important. Keeping these priorities in mind as you look at homes and updating this list based on the homes you tour will make buying the right home easier in the long run. Affordability, ample closet space, the style of home, size and location of property, and home condition are important considerations to think about. If the search becomes exhausting you can scale back your list and look for a home that would be a good investment but may not have everything you want.

Once you have chosen the location and have a few houses your interested in you can further narrow your list with other considerations. Taxes and utility cost should be on the top of your list of things to consider after picking your general location to buy a home. Also if you have children you will want to look into schools and emergency services like police, fire, and hospitals within the area. Contact your real estate agent to get a complete list of these and other outer factor that will affect your quality of life.

Going from renting to buying a home will be a big step. Finding that perfect house and making a home will require time, money and patience. Take the time to get informed and do your research so your investment will be a dream home buying experience.