Are you planning to buy a home in 2020? Worried about making rookie mistakes as a first time home buyer?
As the real estate agents and home sellers continue to use technology to connect with potential home buyers, the number of days taken by a buyer from the first visit to the home to closing the deal is diminishing rapidly.
According to Redfin, a report by a real estate firm in the US, “buyers are spending 3 fewer days searching for homes in 2019 than the previous year“. This can also lead to rookie home buying mistakes.
Here Are the 4 Frequently Asked Home Buying Question to Help You Avoid Making Rookie Mistakes
1) Can I Buy a Home With a Low Credit Score?
This question arises in the mind of first-time buyers with bad credit scores after they apply for a mortgage and end up disappointed as most lenders do not want to do business with them. Or the ones who are interested ask for a high-interest rate.
Instead of dealing with a private lender, approach a state-sponsored agency like the Federal Housing Administration (FHA) or Veteran’s Administration (VA) loans. They will definitely be able to help you out.
2) Should I Buy a Home or Stay in a Rented Home?
There is no single answer to this question. Whether you should buy a home or continue staying as a tenant entirely depends on your current financial circumstance.
Moreover, you should also take into account whether you are planning to stay in this new home for a long time or just for the short term.
In my opinion, renting is always a great option if you are still not sure about the true purpose behind buying a home. Do not make a hasty decision.
3) What Are the Tax Benefits for a Homeowner?
Before you look into the tax benefits enjoyed by homeowners, I’d like to call your attention to the fact that the IRS updates its policies every year.
In 2019, the IRS had published an online document for those preparing for 2018 returns. To file for tax benefits, you must fill up Form 1040, U.S. Individual Income Tax Return.
Also, bear in mind that the cost of utilities, wages you pay for domestic help, insurance, or depreciation is not deductible.
4) How Should I Begin the Home Buying Process?
It is never advised to buy a home in an unfamiliar or an unknown area. No matter how great the price may seem, always make sure that you are well acquainted with the region, people and culture you wish to buy your dream home in. This is the first step to home buying.
Next, be clear with the purpose of buying a new home. Do you wish to start a family here? Or are you interested in buying it just for yourself? For one or two occupants, it is advised to buy a starter home. Moreover, your income, job security, expenses should also be considered, subsequently.
Conclusion
These are the 4 answers to your questions about home buying in 2020. What have you decided? Are you going to buy a starter home or a villa? Let us know in the comments below.
