Owning a home is more than just hype; it’s the gateway to long-term and short-term financial success. Long-term, you’ll build an equity nest egg and short-term, you’ll be able to enjoy potential tax breaks and pay yourself instead of a landlord. A home purchase is an investment you’ll be glad you made!
Owning a home can make a huge difference for your financial future, especially for a first-time homebuyer. While buying a home can be a transformative experience for you personally, homeownership can help you financially as well. Homeownership can lead to building your personal wealth due to home equity, or fair market value, which will likely increase over time based on both the market and any renovations you make to your home.
There are many reasons owning a home is important, and most of them stem from the fact that a home is an asset and paying a mortgage increases your equity in that asset, which is better than paying rent. A potential increase in your credit score, tax benefits and anticipated growth in the housing market are additional benefits to having a mortgage.
Having a mortgage can help improve your credit score because a home loan adds diversity to your credit profile. Even though a mortgage is a debt, it is “good” debt, because it is tied to an asset (the house). The largest portion of your credit score is determined by your payment history, and making payments on a long-term loan like a mortgage positively contributes to your payment history. As long as you make your payments on time, your mortgage can improve your credit score by increasing your reputation as a responsible borrower.
Homeownership is a journey that requires a lot of information and support. Once you feel ready to apply for a mortgage, you can contact us and you’ll be minutes away from beginning the exciting transition from home renter to homeowner!
Source: Missionfed
