Along with all the benefits of homeownership comes the responsibility to manage that investment wisely.

The Benefits of Homeownership

The rewards of owning your own home include many benefits unavailable to renters. Among other things, homeownership allows you to:

Start building wealth: Making a mortgage payment every month builds up your equity stake in your home, contributing to your long-term savings and helping you solidify your financial future.

Reduce your tax burden: The interest you pay on your mortgage is usually tax-deductible, which can lead to significant tax savings--especially in the early years of the mortgage term, when most of your monthly payments go toward interest. Make sure you consult your tax advisor about the deductibility of interest.

Build your credit history: Timely mortgage payments can contribute to a positive credit history.

Eliminate landlord hassles: You'll no longer have to fear non-renewed leases and rent increases.

Make the house your own: Aside from zoning rules, Homeowner's Association requirements, and local building codes, you'll be free to decorate, remodel, and renovate as you wish.

Responsibilities of Homeownership

Before deciding to buy a home, consider the responsibilities that will accompany your purchase. You will most likely have to make some adjustments to account for the following:

Additional financial responsibility: Whether buying is more costly than renting depends on your individual circumstances. As a renter, some or all of your utilities may have been paid for, but they will now be solely your responsibility. You'll also be responsible for property taxes and homeowner's insurance in addition to your loan.

Maintenance and repairs: Maintaining your property will be up to you, not the landlord.

Less mobility: Unlike having a lease where you can move with minimal notice, moving when you own a home is more complicated since you're responsible for ensuring the mortgage gets paid.

Depreciation: Real estate often increases in value over time, but not always. Owning a home means facing the risk that its value will depreciate.

Beyond the financial benefits, the personal rewards of homeownership can be tremendous--as long as you prepare for the responsibilities that come along with it, and choose a home and a mortgage that are well-suited to your needs. Western Pacific Mortgage consultants can help you make the right decisions throughout the home financing process, so contact one today.

Getting Ready to Buy

Financial preparation is the first and perhaps the most important step in the homebuying process. Get ready for your purchase by taking a careful look at your finances, especially your savings, credit, income, and debt.

Down-Payment Options

Buying a home doesn't necessarily mean having to make a large down payment. Western Pacific Mortgage offers a variety of low- and no-down payment options that can help you buy a house using little or no cash.

Pay yourself first. When you pay your monthly bills, the first check you write should be to your savings or investment account.

Avoid unnecessary purchases. The less you spend on big-ticket items that you don't really need, the sooner you'll become a homeowner. Keep that goal in mind when you shop.

Set realistic goals. Take an objective look at your monthly income and expenses, and decide how much you can really afford to put aside. If saving for a home causes you to fall behind on your other obligations, it will defeat the purpose.

Your Credit

The way you use credit is an important part of the mortgage equation. Your lender takes your credit history into account when deciding whether to approve you for a mortgage, and what interest rate you will have to pay.

If you've experienced financial difficulties that may have impacted your credit, it doesn’t mean you can't get financing to buy a home. Learn how our flexible programs can help you begin moving beyond short-term problems into a lifetime of secure homeownership SM . Contact us to speak with one of our loan consultants.

Income and Debt

To qualify you for a home loan and determine how much you can borrow, your lender will compare your income to your outstanding debt. Guidelines vary, but lenders usually prefer that the amount you spend on monthly debt and housing expenses be no more than 36% of your gross monthly income. Try to avoid taking on any new debt in the months leading up to your purchase.