by Yael Ishakis on February 20, 2025
Deciding to finance a new home can be exciting, and because of that buyers tend to want to jump right in. Not so fast! Before you start searching for your dream home, you need to get pre-approved and that means applying for a loan. You will need to get things in order by deciding how much home you can afford, mapping out your expenses, gathering all of your documents and then start looking for a lender that can help you decide what loan is best for you.
Some Pros of financing a home are:
- Buyer builds equity in the home
- Credit scores increase with positive payment history
- Mortgage interest and property taxes may be tax deductible
- Buyer has full control over home improvements and upgrades
- Homes frequently increase in value over the life of a mortgage
On the flip side of this, you will also want to avoid a few things, like purchasing high-cost items on credit, looking for your dream home too soon when you are not approved or asking your friends for mortgage advice.
Some Cons of financing a home are:
- Requires upfront costs for down payment, closing fees, etc.
- Process can be complex
- Property taxes and HOA fees are the buyer’s responsibility
- Buyer incurs any maintenance and repair cost
- Typically a long-term investment
Financing a home is a significant decision that requires careful consideration. The process can be overwhelming, but with the right lender and financial plan, homeownership can be an achievable and rewarding milestone.
If you’re ready to start the pre-approval process or need expert guidance, reach out today to explore your options!
by Yael Ishakis on February 19, 2025
Paying your income taxes each year leaves your wallet a bit thin? There may be money hiding in your home that lessens your tax burden. Here are four places to look:
- Home-Office Deduction
If you work from home, you could qualify for a home-office deduction. Taking the deduction can be a bit complicated; so many people who qualify don’t claim the exemption. An estimated 26 million Americans have home offices, but only 3.4 million claim them on their tax return. Perhaps that’s why the Internal Revenue Service attempted to simplify the process in 2013. The write-off takes into account depreciation, utilities, insurance, the amount of square footage dedicated for office space, whether you host clients at your house and other factors. Because the parameters involved in filing a home-office exemption are rather complicated, it’s best to keep all business-related receipts, records of client meetings and other pertinent information to make things easier when you prepare your return.
- Casualty Loss
Damage to your home from an act of God or a theft or burglary may qualify you for an income tax exemption. To qualify for the write-off, the causality loss must meet the “sudden event test.” That means it must be sudden, unpredictable, have involved some natural force and occur in a single instance. To claim thefts and burglaries, you must be able to prove that a wrongdoing has actually occurred. It can’t just be a case of a lost item that you suspect was stolen. Proof can come in the form of witness statements, police reports or newspaper accounts.
- Energy Efficiency Upgrades And Repairs
Upgrading your home with energy efficient improvements can qualify you for a tax deduction. New roofs, insulation, windows, doors, and a number of additional items qualify for the deduction. The deductions let homeowners claim 10 percent of the total bill for energy efficient materials. The maximum credit is $500.
- Real Estate Taxes And Newly Purchased Homes
New homeowners should look at their settlement statement a bit closer. If the previous owner prepaid property taxes that cover any of the time you owned the home, you can include the prepaid taxes in your property tax deduction. Don’t pay more than you have to when you file your taxes each April. Consider these commonly overlooked deductions that can lessen the amount you have to pay.
Deciding to finance a new home can be exciting, and because of that buyers tend to want to jump right in. Not so fast! Before you start searching for your dream home, you need to get pre-approved and that means applying for a loan. You will need to get things in order by deciding how much home you can afford, mapping out your expenses, gathering all of your documents and then start looking for a lender that can help you decide what loan is best for you.
