For potential homeowners, the decision to buy a home is one of the largest financial decisions they will ever make. The decision can often times be driven by emotions. However, we would like to help you by quantifying some of the tangible benefits and costs of owning a home, which will give potential buyers a rational basis for making a housing decision.
Home ownership Builds Wealth Over Time
Most people learn growing up that owning a home is a financially savvy move. However, this past decade of real estate turbulence has shaken everyone’s confidence in home ownership. That is why it’s so important that we discuss this again now that we’re in a ‘new market.’ Home ownership can be a wise financial move – but only if people buy homes they can actually afford.
Build Your Credit
There are many factors that impact a persons credit score, one of the most important being the length of credit history. A great tip for improving a credit score is to improve average length of credit accounts and owning a home can accomplish this.
Since the length of a mortgage is typically 15 or 30 years, having a mortgage on your credit history is a great way to lengthen the average of your credit accounts. In addition to improving the average length of credit accounts, each and every month that a mortgage is paid on-time it shows that you’re a responsible borrower which not only can improve a credit score but also improves the chance of approval for future credit accounts.
A Solid Investment
An experienced real estate agent cannot predict exactly what’ll happen with home values in an area, but they certainly can provide some information on the values over the past several years. Lake Superior Real Estate Team would love to provide you with this information for the area you are looking to purchase a home!