Getting ready to buy a home
You've sold yourself on the advantages of homeownership over renting:
- You can usually deduct mortgage interest on your tax return.
- You can build equity paying a mortgage, whereas you can't paying rent.
- Home values generally appreciate.
- You can avoid increases in your monthly payment - something you can't avoid while paying rent.
- You can cash in on equity you build in your home.
And now you're ready to make the big step. But before you start collecting paint chips and fabric swatches, you need to collect your thoughts around more practical matters - in particular, money matters.
The first question to ask yourself is “How much can I afford to spend on a home?” Purchasing a home at a price you can afford is key to successful homeownership — that is, maintaining homeownership. The best way to find out how much home you can afford is to:
