Homebuyer Goals for 2021 | Trusted American Mortgage
With mortgage rates at historic lows, this may be the best time ever to get into the real estate market.
If you’ve set a goal of finding that home of your dreams in 2021, we have some suggestions of other aspirations you may want to set for the year. In these suggestions, you’ll find a good amount of homework and some explanation for why you should start saving now for that down payment, if you aren’t already.
Research the tax savings. Home ownership is part of the American dream and the IRS incentivizes purchasing property by offering tax deductions and credits for homebuyers. Most of these, beyond a deduction for points if you pay those at closing, are for after you purchase, including discounts for interest and private mortgage insurance payments. So, either these are benefits you think about for long-term return or you make the move to buy a home early in the year so you get more starting with your 2021 taxes.
Save toward that down payment. First, let’s cover some realities. While the rule of thumb for down payments is 20%, partly because that makes it easier to get some loans and can help lower your interest rate for others, most Americans don’t hit that mark. And that’s OK. Still, whether you’re just shy of that mark for your dream home or you haven’t started putting money away for the down payment, it’s a good idea to set money aside for the down payment. Not only is it required in some cases, but it can also reduce your monthly payments and how much you pay overall.
Get to know the options for assistance. Whether you need help making any down payment or getting to the 20% target, there are assistance program that can help you get there. From grants to loans, there are plenty of options for making it to the mark you need. The Federal Housing Authority has a page listing down payment assistance options, and your states or municipality may have a similar catalog.
Figure out what you can afford. The long-standing rule of thumb is housing should take 30% of your income, though obviously there’s nothing wrong with staying below that. That mark works for most situations, but it may be more than some people can handle or want to take on with their future financial goals in mind. Figure out what’s manageable for you and make sure you stick to that budget as you cruise the market.
Learn about the different types of loans. Finding the right loan for you means educating yourself about the available mortgage options. Weighing fixed vs. variable rates, FHA vs. VA, and all the rest can be a bit confusing. Fortunately, you have friends in the industry right here.
If you’re ready to start weighing your options, the experts at Trusted American Mortgage are ready to help. Contact us today for the answers and other assistance you need.