Buying Your First Home

If you don’t yet own a home, you’ve received ample advice from family, friends, and even complete strangers. You, however, may still wonder if buying a home is right for you. Relax. The more you know about the housing market and the homebuying process, the less anxiety you’ll have. In the Chicago area, an experienced Chicago real estate lawyer can put your mind at ease, address your concerns, and review the documents associated with homebuying. Here are the best reasons to own your own home:

1. Pride: You can turn up the volume, attach permanent fixtures, and decorate however you please. Unlike rent, mortgage payments don’t jump unexpectedly; some housing costs may actually decline the longer you own your home.

2. Family: A home is an investment in your family’s future. Ownership gives your family stability and security, a chance to take part in community activities, lets you and your family build lasting friendships, and offers your children educational continuity.

3. Appreciation: Real estate moves in cycles, but over time it consistently appreciates. Many view their home as a hedge against inflation. Over the five-year period 1998-2002, home prices increased nationally at an average of 5.4% annually.

4. Savings: Building equity in a home is an ideal savings plan. When you sell, you can take up to $250,000 ($500,000 if you’re married) as gain without owing federal taxes.

5. Tax deductions: Property taxes paid for a first home are fully deductible. You may also deduct the interest you pay on your mortgage and some of the actual costs involved in homebuying.

6. Mortgage interest deductions: As long as your mortgage balance is less than the cost of your home, your mortgage interest is fully deductible.

7. Mortgage reduction builds equity: Each month, a portion of your monthly payment is applied to the principal balance of your loan. The principal portion of your payment rises slightly each month so that it is lowest on your first payment and highest on your last.

8. Equity Loans: Mortgage payments let you build equity ownership interest in your home. You can borrow for home improvements or a variety of other reasons.

In the Chicago area, if you’re buying a home for the first time, learn more. Get the help and information you need by speaking promptly with an experienced Chicago real estate lawyer.