Buying a home can save you money! You will save on taxes because the interest on your mortgage is tax deductible. If you are renting, your landlord benefits from this tax savings. For example, a portion of your rent check ends up going toward your landlord's mortgage interest and property taxes. Your landlord will be able to deduct this on his/her tax return but you, as the renter, will receive no tax break.
As a homeowner, you would be able to deduct the mortgage interest and property taxes on your own tax return. Since interest is always highest during the beginning years of the loan, your deductions will be largest during this period.
How Much House Can you Afford?
You will first need to determine how much home you can afford or what payment you are comfortable with on a monthly basis. By contacting a lender, you can learn about various mortgage loan programs and interest rates. If you do not have a lender, a Hegg REALTOR® can assist you in finding a reputable lender. The mortgage loan officer will be able to analyze your entire situation by calculating a debt-to-income ratio and getting your credit score.
Hegg, REALTORS® has a mortgage loan officer located in our building for our clients’ convenience. You may contact Mike Kuenzi at First Bank and Trust if you need a lender or have questions on starting the loan process.
The following information is usually required during the loan process:
If you currently own Real Estate: