We realize that the phrase "American Dream" conjures up different images for different people. Some see themselves driving the open lane for a slam dunk... To others, the American Dream is to hit the lucky number on Friday afternoon and spend the rest of their life in a perpetual state of "weekend".
Now let's get real. If you don't fall into one of the groups mentioned above, you may need to have a backup plan, a backup dream if you will. Home ownership has long been touted as the American Dream and for good reason. (More than six of ten American families live in homes they own.) With proper planning and discipline, it can be very attainable and do wonders for your quality of life.
Rent or Buy?
Good question. Buying a home has many distinct advantages over renting. Here's just a few of the things you can do as a homeowner:
Take that tax deduction. This is probably the sweetest part of home ownership. The mortgage interest you pay on your home is tax deductible. And when you consider that you can often finance a home for about the same amount per month, you actually come out ahead with ownership. Other expenses you may be able to deduct as a homeowner are points (fees charged by the lender), a partial chunk of the closing costs and real estate property taxes.
Don't forget the added benefit of home equity. By investing in your home, you are actually taking part in an appreciable investment in which you build equity. In time, this equity can help you finance other major purchases, such as a college education or a new car.
Live the way you want to. You can customize your home the way you want to. If you need to modify a room into an art studio or would like to try some funky wallpaper, it's your call, No need to worry about how to get around the landlord's rules. Many home improvements will actually add to your home's value. And your home improvement costs may be used to reduce your tax when you sell.
Get the Credit You Deserve
One more thing you'll want to do at the outset of this process is to check the condition and accuracy of your credit report to prevent any "unwelcome" surprises. Your lender will definitely call up your report during the pre qualification process. The more you know and can tell them up front, the better. For a small fee, you can request your credit report from Experian (formerly TRW), Transunion or Equifax.. If your credit report is less than acceptable, a more recent track record of good credit management may help your case. A bankruptcy and other credit "dings" does not automatically disqualify you. Contact us for more details.
Stretching Your Limits
If you've just got to have more mortgage, there are a few things you can do to boost your borrowing power.
Reduce your long-term debt. Consider putting off the purchase of that new car or boat or accelerate your credit card payments to finish them off before you start into the loan approval process.
Increase your income. Wait for that annual raise. Or take on an opportunity to earn extra income.
Weigh your financing options. There are tons of loan programs out there. Try to find one that requires a lower down payment and/or lower monthly mortgage payments. We can help call us for more details.
Janus Mortgage Corporation is a mortgage broker licensed in the State of California, under the auspices of the California Bureau of Real Estate license number 02038085 and the National Mortgage License Registry NMLS Number 1690954, . All offers for loan programs are made for loans on California properties only.