Is home ownership your American Dream? If so, taking the time to do your homework will help make it a dream come true.

Let’s begin by looking at the benefits of being a homeowner.


A home is a place to call your own. Do you long for a feeling of permanence? Do you dislike following your landlord’s rules? Do you need more space? Do you want to raise a family and/or have pets?

If you answered “yes” to any of these questions, then home ownership may be right for you. In addition to these lifestyle issues, owning a home can be an excellent investment. Here’s why:

Tax savings.
Homeowners receive tax deductions that are not available to renters. That’s because the interest paid on a mortgage is, in most cases, deductible.* The result can be a substantial savings on your income tax return every year.

Housing cost stability.
While rent can increase year after year, if you choose a fixed-rate mortgage, your mortgage payment will remain stable and predictable. (However, you should be aware that an Adjustable Rate Mortgage does not offer this advantage.)

It’s a savings plan!
Your monthly mortgage payments act as a scheduled savings plan. Over time, as you make your mortgage payments, you accumulate what is known as “equity.” Equity is created when the value of your property is greater than your mortgage. In contrast, rent payments never earn equity.

Increasing value.
Generally, property increases in value over time. This process is also known as appreciation. This increased worth is equity you can borrow against or take as profit upon the sale of the property.

*Be sure to check with your tax advisor regarding the deductibility of mortgage interest.



Home ownership comes with certain responsibilities. First and foremost is your responsibility to make your mortgage payments. In addition to your mortgage, you’ll need to have money for the cost of moving into your new home, making any necessary repairs, paying property taxes, hazard insurance, and association dues (if applicable), as well as for regular maintenance of the property.

It’s possible that these expenses will amount to more than you are currently paying in rent, although not always. If home ownership is your goal, you may need to alter your personal spending habits in order to afford a home of your own.

We can help calculate whether or not it’s the right time to become a homeowner. A number of factors need to be considered, including down payment, closing costs, monthly mortgage payment, taxes, and insurance, as well as other related costs of home ownership.

In addition to helping you determine whether or not you can afford to become a homeowner, we will help decide approximately how large a mortgage you can qualify for. This process is called “pre-qualification.” We may also be able to get you “pre-approved.” That means actual lender approval for a specific loan amount.

We can also help you by offering available alternatives and options to overcome any potential uncertainties you may have in credit history, income, expenses, and other financial factors.


In addition to being financially ready to assume the responsibilities of home ownership, you need to be in the right frame of mind.

To help you make this important decision, you may want to ask yourself these questions:

  • Are you ready for the responsibilities of owning and maintaining a house?
  • Do you have a steady income and stable employment?
  • Do you anticipate staying in the same geographic location for the next few years or more?
  • Have you created a budget to determine if you can realistically afford to be a homeowner?
  • Do you have a clear credit record, or are there items in your credit history that need to be explained?
  • Do you have a down payment saved, and if not, can you rely on the gift of a relative? (Some limitations usually apply to how much of the down payment can be a gift – we can explain this more fully.)
  • Have you been “pre-qualified” to determine how much money you can borrow?
  • Are you ready to learn about the many alternatives and options available for home financing?

If you can answer “yes” to all of these questions, you are on the way to becoming a homeowner.

Contact Us for more details about the advantages of home ownership, as well as answers to any questions you may have regarding your ability to purchase your piece of the American Dream.