Buying a Home
Millions of Renters Could Save Money by Buying
Buying a home is the start to building up your personal wealth. You can not build up wealth by paying rent each month. The average renter in America today is worth less than $5,000. The average homeowner is worth over $172,000.
Many renters today could actually afford to buy a home, to get a mortgage, but they don’t know it. You don’t need a big down payment. With an FHA loan the down payment is 3.5%. You don’t have to have perfect credit. Even if you have had some credit problems, you can buy a home with a 620 credit score.
Saving money is the start to buying a home. By just cutting back a little on your spending you could add thousands to your home purchase. And at the end of the year you get a tax write off from your mortgage.
Purchasing a home is not a risk-free transaction. You have to be able to pay your mortgage monthly. Just because a mortgage company will lend you a sum of money. This does not mean that you should use the full amount. It is smart to hold back a little, for example 20 percent.
Best of all Real Estate will go up in value. Because there is a set amount of land and a growing population,