Homeownership is an important part of the American dream. When you own a home, it is yours to do with as you wish. You are at liberty to make it just that - home.
Owning a home of your own offers important financial advantages as well. The principal part of your monthly mortgage payment builds equity, while the interest you pay provides a significant tax deduction. If the value of your house increases in value over time, you will have a source of cash later on if you refinance or sell.
Lastly, there is a definite tax advantage to owning your home. If you decide to sell your home and you have lived in it for two of the five years prior to its sale, you do not have to pay taxes on any capital gains up to $250,000 for single women and $500,000 for married couples filing a joint return. Instead of throwing money away by renting, you are making a long-term investment.
As one expert put it, "The younger you own your home, the wealthier you will be in your lifetime."
HerTip: If you can't commit to remaining in one place for five years or more, then owning is probably not for you. With slow appreciation and the costs of buying and selling a home, you may end up losing money if you sell any sooner than that.
Over fifty-two percent of female-headed households in America own their homes - that's one in every two. In this class we will cover the basics on the purchasing process so that you too can finally own the home of your dreams.
Continue to: Part II: Qualifying for a Mortgage
Qualifying for a mortgage